Toronto Housing Market Crash – 15 Reasons why the Toronto Real Estate Bubble is About to Burst?

Toronto Housing Market Crash?

May 14, 2018. When we begin counting the many reasons why and when the Toronto real estate estate market might finally implode, we might agree it is a real possibility now.

It’s only the persistence of Millennials hoping to buy a Toronto condo that’s keeping this market alive. Although some call it healthy, this quiet in the “critical care unit” is deceiving. As new construction wanes, pessimism could become intense. Ontario needs new poltical leadership and a boost for the housing construction sector.

The drop in housing prices in the Toronto area has been shocking and now we hear Ontario politicians aren’t interested in saving it, even if it brings the Ontario economy crashing down.

Is the Big Toronto housing crash coming this year or 2019? Would it precede or or be connected at all to a potential Toronto stock market crash? In this post we’re going to explore the Toronto housing crash factors, some of which are getting noisy. Check here if you’re looking for the latest US housing bubble report.

Rising Gas/Oil Prices and $CAD, Troubled NAFTA

Added to 50% drops in sales, Ontario is looking at rising interest rates, rising gasoline prices and rising CAD, and lower government spending with a potential minority government (where nothing can done).

The Ontario government’s disturbing strategy now is now working within an economy on the downturn and a smaller tax base. Wynne was rightfully concerned about the TPP trade deal threat which holds little promise for Ontario manufacturing.





With the US pulling auto manufacturing back into the US, our auto industry is threatened. Oil could pull up the CAD value and decreasing competitiveness for Ontario, but it’s  looking good for the ailing Calgary housing market.

Companies here aren’t competitive with US companies enjoying a new low tax rates. You can read the other reasons for a doom and gloom picture for the Toronto housing market report.

If there’s been a perfect time to sell your home, this is it.

And with US President Donald Trump’s 2018 state of the union speech, it looks like the US is on its way to its biggest economic growth in history. Without the full benefits of NAFTA, Canadian economic predictions are troubled, and if oil prices rise too high, the Ontario economy is looking risky.

And for Ontario, the picture is less positive:

  1. the TSX stock exchange is one of the worst performing in the world
  2. the NAFTA deal may be cancelled or manfacturing exports down
  3. the TPP deal would open up Ontario to cheap Asian competitors
  4. the price of oil is rising and raising Ontario’s costs of doing business
  5. real estate is very expensive
  6. rent to income ratios are extremely high in GTA
  7. interest rates are high
  8. consumer debt is maxed out
  9. the Ontario government is anti-business and anti-housing growth
  10. Ontario’s taxes can’t generate enough money for infrastructure improvements
  11. the CAD is rising and eroding Ontario’s competitive advantage
  12. Canada has been near last in direct foreign investment for many years
  13. US tax rates have plummeted giving companies reason to relocate there
  14. cash strapped, stressed out Millennials will finally give up on the dangerous gamble of buying a home for $600k+
  15. the Federal Government may raise the Capital gains tax
The Toronto Stock exchange one of the worst in the world, and is tumbling in 2018
Canadian beginning strong rise against falling US Dollar.

Are Canadians thinking crash?

From the Bank of Canada governor to expert authors, there’s a dull roar of people warning about a Toronto housing crash. Are they contibuting and pushing or is this just plain fact?

Now we’re into 2018, home sales are slow, sellers are definitely getting nervous, and younger buyers more frustrated. More worrisome is the recent troubles in the stock market, with the rising dollar and rising oil prices which just hit $66 per barrel.

The debate raged last year, but it looks like Douglas Porter (his most recent thoughts) might have it right for a 2018 forecast.

Here’s Douglas Porter again on Feb 1 saying there is no immediate danger:

 

The Americans too are worried about a housing bubble in 2018, yet their economy is on a definite upswing. The amount of money being repatriated into the US (Apple bringing in $450 billion) is incredible. All that investment money is coming back home to create jobs in the US. Of course there will be a spillover into Canada.

Huge personal debt and a vulnerable economy combined with Millennial desperation and huge immigration growth are fueling some sort of event.

Everyone’s wondering what will start the avalanche. The election of the PC party in June could create the euphoria and optimism that will inflate prices severely next summer.  There’s some risk in it, however the benefits will be tremendous for anyone in Ontario looking to buy their own home.

“This is either a pause in the bubble and inflation is going to resume into even more stratospheric levels, or this is the start of a hard landing,” said Hilliard MacBeth, portfolio manager at RichardsonGMP and author of “When the Bubble Bursts: Surviving the Canadian Real Estate Crash.”

Should you list and sell your house now? Will interest rates and inflation, and government policies lead to a catastrophic housing and economic collapse in Canada in 2018/2019? Could our prime minister mismanage the economy?

In the booming US, they’re asking similar questions about a housing market crash. That would make a Toronto market crash more plausible. Yet many see the market ready to boom. Very confusing, but let’s take a look at the Toronto market crash scenario first and see all the factors to consider before you buy or sell your home.



2018, 2019, 2002 or Beyond?

If it’s not a question of if the Toronto market crash might happen, then might a questio of when — 2018 or 2019? Or will the crash threat simply fade as demand for homes weakens? Lots of uncertainty and not much consensus.

There’s a list of the crash factors however if they line up in a certain squence, it might be enough to set the house of cards plummeting. Is the key crash factor financial, political, or would it be a sudden loss of consumer confidence in real estate and the Canadian economy?

Much of Canada’s prosperity comes via natural resources and trade with the US. Despite all the optimism, trade restrictions (Bombardier loss) by the US are no joke as are falling commodity prices. And if you were a bank, would you want to lend out billions to young first time home buyers in the face of an unstable government and economy?

I just read a story about a company that is ready to help buyers rent to buy so they don’t have to pay a downpayment in some cases. Is the same scenario we had in 2006 and 2007?




Provincial Governments and Drastic Actions

The Ontario Premier impulsively reacted with the foreign buyers tax which helped cool demand, but the crash may not be about the flame. It may be about the fundamentals of a Canadian economy which has the least direct foreign investment of any G20 country and a shaky trade deal with one country which seems to blocking imports of our wood and oil.

The Ontario, BC, and Canadian federal governments have been so negative, repressive, and unsupportive of the contribution of real estate to the economy, that those actions are the key to a disaster. Continued suppression of land development for housing is creating a true housing crisis.

1 million new immigrants are arriving in Canada by 2020, it’s sets the stage for desperate buying (the dreaded housing bubble) and bigger opportunities for rental property investors.

Some experts suggest a crash is impossible, while other expert predictions (from TD’s Bank President), support the theory that rising unemployment and rising mortgage rates would be needed to begin the landslide.

Canadians have one of highest per capita debt levels of any G7 nation. With the NAFTA deal in trouble, we could see those rise. So when someone asks “should I sell my house” in Toronto, the response depends on whether the government will change course and help in a massive housing development program.

crashahead
Image courtesy of look4itknysna.co.za





What Causes Housing Bubbles to Form and then Burst?

What causes a housing market bubble?  What factors could burst Toronto’s bubble and possibly send the economy into a skid? Most of those factors are listed below. The key is rocketing demand (like we saw in spring 2017) combined with intensive government meddling, during a time of economic prosperity.

The key may be market susceptibility, instability, caused by investor uncertainty. After a charged up price index, an event occurs that sends investors scurrying fast.  It could be foreign investors or Canadian investors. Only if the economy suddenly loses its strength and people find themselves without jobs will they default and abandon their underwater mortgages, as they did during the US economic recesssion. When bank governors begin to use vague, waffling language, it creates the kind of uncertainty investors dislike.

Bank governor Poloz said that interest rates could move “in either direction.” He emphasized that the Canadian economy was still highly susceptible to shocks, and a cooling housing market combined with debt worries are still worthy of concern – from the Fool.ca  

Should I sell my house in Toronto and should I buy a condo in the Toronto area?

Find out how the Toronto Real Estate market shaping up.   Check out more detailed market updates and forecasts for of MississaugaVaughan, Richmond Hill, Aurora, Newmarket, and Bradford.

Vancouver’s real estate market has shown volatility of late. It looked like the market was coming back but it has leveled off again.

The lack of rentals is the “biggest pain point for our city,” With 100,000 people moving to the Toronto area annually, the region needs about 30,000 rental units. Toronto has about 1,500 coming on stream” from Toronto Star report.

If you’re thinking of selling your home to get in on this Toronto market winfall, you need to find a real estate agent. The market might not burst until 2018, but it could heat up badly in April, May and June to begin the freefall.

richmondhill4

What exactly happens in a real estate market crash? Here’s one answer:

If a bubble were to burst, the real estate market would slow to a crawl. “You’d probably see very little transaction volume,” said University of British Columbia professor Thomas Davidoff. “People would be locked into their homes and their mortgages.”  




In a crash, you couldn’t sell your home since buyers would just wait forever for the market to hit bottom and fewer could get financing to buy it.

Lots of questions to ask such as “is this just a monster luxury home problem?” If the market plummets, what will it mean if I have an underwater mortgage and can’t renew at higher mortgage rates?  Are my relatives wise to buy right now? Will a crash have an effect on employment in the Toronto area? Consider this from a report on CBC:

1 in 10 wiped out by 20% correction — A badly managed downturn in real estate prices could wipe out the wealth of a large number of Gen-Xers and Gen-Yers. We need to recognize that young families are the most likely group to be plunged underwater by a nasty housing correction,” said CCPA economist David Macdonald.

Sound scary? Then let’s take a real, no holds barred look at the real estate market in Toronto and the factors that could create a crash because our assumptions might be false.

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This report from the CBC tells us a lot about the whole business of forecasting crashes (and that they haven’t happened)

Prices keep rising. Bearish predictions that Canada’s housing market is about to crash, and calls for the government to cool hot markets, have been around for at least that long.

In fact, prices have risen steadily since the recession of the early 1990s and even the dip during the financial crisis of 2009 was a mild one. “Da Bears may some day be right, especially on the hottest markets, but getting the timing down is half the challenge,” Porter said. A Goldilocks market is not too hot, not too cold. But Canada’s housing market is running both hot, cold and lukewarm all at the same time.  From http://www.cbc.ca/news/business/bmo-porter-housing-crash-1.3493809

Nostradamus and the Pundits

Some experts are calling for a housing crash in 2017, based on overheated prices, yet they don’t discuss what might be done to alleviate the problem in the Toronto region. The key issue for the Toronto real estate market, (as it is in the US market) is a lack of housing supply but there are other factors outline below. A host of government leaders have sought to crush land development and have quietly gotten away with their policies. But now the spotlight is aimed directly on them.

Could Premier Kathleen Wynne arrange to cancel the Places to Grow legislation and open up new land to ease home prices? Isn’t that a more sensible thing to do rather than providing more incentives for first time buyers who  are up to their ears in consumer debt pondering a very high priced condo or house purchase? Is Kathleen Wynne is precipitating risk factor for a big housing crash in Toronto? Will interest rates rise so buyers would be less likely to bid on homes and condos?

Some would suggest that she and the Liberals are too ideologically driven to flex on that one. Yet Wynn’s approval rating is now below 20%. That is really low so easing up when the Federal government is crack down on mortgages doesn’t make a lot of sense. Her super low rating means Ontario doesn’t want her as Premier anymore and out of desperation facing years more in office, she could do something risky to seek approval. Wynne is a sell now factor.

More Foreign Investment Needed

The high demand for homes and property from foreign investors from China and the Middle East and the US, has been  a wonderful thing for Ontario and Canada. If not for real estate, the world has no interest in investing in Canada. Foreign investment is at its lowest level in 60 years which means no one is going to save us.

Federal Justice minister Bill Morneau recently announced measures to cool the Toronto market, however experts feel the Feds can’t do much, in fact the Feds have said that themselves.  They believe the provinces should be managing their own affairs. That brings it back to the Wynne government who has used risky, sudden measures. So when ministers start using words such as fragile, you’ve been given fair warning about a potential crash.

Justin Trudeau should be travelling and posing for cameras on the subject of why investing in Canada is wise. New free trade deals with ailing South American countries won’t work because we have nothing to export and they don’t buy our stuff. Without financing, the Ontario companies don’t stand a chance competing against well funded foreign firms. A low dollar and access to the US market is all we have.

If the 2018 Toronto Housing Market does Crash

If a housing crash is imminent, you’d be wise to unload your property now during the winter. Is 10 or 20 thousand dollars worth missing out on the greatest real estate cashout of all time? Up or down market, a wise person would answer the question of “Should I sell my home now” is in the affirmative.

Toronto Housing Market Crash Factors

What are the economic and real estate market factors that affect your selling decision?

  • strength of the US economy
  • GTA economy and employment starts to fall
  • Canadian consumer debt reaching lmits
  • NAFTA agreeement conflicts and refusals
  • US restrictions on imports from Mexico and China begin to topple their housing markets
  • immigration levels drop off
  • add on taxation by Ontario, city and Toronto governments
  • soaring home prices fall
  • moderate new home construction – abandoned security deposits
  • government meddling with property use
  • mortgage rates rising faster
  • number of millennials buying homes drops or house prices are out of reach
  • Wynn and Trudeau don’t have a handle on the economy
  • political pressure to keep home prices up to protect homeowner’s equity and credit situations

What the Heck Happened in Vancouver?

The booming Vancouver real Estate market plunged not long after the foreign buyers tax was implemented. That hurt speculators and Asian buyers who were finding a way to invest in Canada. It was good for BC renters, but not good for Vancouver. Foreign investors will have lost some trust in the BC government. These sorts of radical taxes and regulations don’t go over well with investors.

Unfortunately, the pain of high rents and no vacancies was too much for the Vancouverites to to bear and they pushed the tax through. The Asian money soon transfered to Los Angeles and Seattle where potential is so high.
Will the bubble burst in Toronto soon? A lot of buyers and sellers and mortgage lenders are struggling with that question.




Kathleen Wynn and John Tory aren’t talking about the crash possibility and the various mayors in Vaughan, Richmond Hill, Aurora Newmarket etc aren’t saying much either. They’re enjoying the tax haul, but they realize Canadian consumer debt is a huge matter. If mortgage rates and unemployment rise, we’ve got a crash type situation on our hands.

With high home prices come new home construction and if you’ve been to Aurora Newmarket, Bradford and King township lately you’ve seen the huge growth in new communities. But the demand far outstrips supply. The fact is Toronto is a hot market and prices aren’t slowing.

Is this the best year to buy rental income property?  Read these posts on best investments in 2017 including investing in real estate.

Does the Past Tell Us Anything?

If the past does tell us anything, it tells us we’ll probably make the same mistakes again about forecasting crashes and bubble downturns.  If we look at Toronto home prices over the past 60 years, we’ll see that they’ve just kept rising. Even the great recession cause only a small blip and the US recession of 2007 didn’t even leave a dent. As long as there’s a lack of development land, the price will speed up like an angry commuter on Indy 400 (or 404 or 401) and inevitably crash.

finposthomestoronto2017

The last thing we’re left with in pondering the possibility of a Toronto housing crash in 2017 is what starts an avalanche?  Is a stock market crash in 2019 a possibility that will affect your decision to buy?

Here’s a few resources on the bubble issue:

Housing market has ‘low probability’ for collapse: RBC report

Why Every Investor Needs to Worry About Canada’s Housing Bubble

Hands off my housing bubble!

http://www.cbc.ca/news/business/cmhc-canada-real-estate-1.3822489

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Predictions of a Housing Boom in Toronto and Vancouver in 2018 Reports Forecasts Predictions Canadian Housing Market

Will 2018 Bring Another Housing Boom in Toronto and Vancouver?

Are the Vancouver real estate market or Toronto housing market going to crash , lift off, or coast in 2018/2019? Has all the negative press made you believe the end is near?

Bankers and politicians keep trash talkin the housing markets. However, as you’ll read here, there is more reason to believe in strong growth arising from a healthy economy, high immigration, demand from 25 to 33 year old Millennials, low mortgage rates, a growing housing crisis and more.

Demand is high, supply is being strangled.

Wynne, Trudeau, and the bankers feel pretty certain they can crush this market (okay, they’ve persisted but will the Canadian economy and stock markets crash in 2019?  But this beast isn’t going to die. It’s driven by dreams and expectations about how we’re supposed to live.




Here’s my outrageous forecast: The demand is so high, they will have to completely reverse course and begin supporting construction and development and enabling purchases. Otherwise, as the election nears, they’re gone.

They’ll look like hypocrites, but the public will forgive because housing is a bigger issue that’s causing serious social troubles. As investors focus on rental properties, such as apartments in Toronto, even rents will skyrocket in Toronto. Toronto property management firms are headed for their own boomtimes.



As spring approaches, we’re going to see intense price pressure driven by a lack of supply. Royal Lepage just released its market forecast survey and they’re predicting Toronto houses prices will rise 6.8%.  That aligns nicely with this whole notion of boom times ahead.

And it turns out, construction is already booming.  Canada Mortgage and Housing Corp. reported that the pace of housing starts picked up in November nearing the highest levels since 2008. Given that we just went through a boom, that’s remarkable.  CMHC believes construction of multiple-unit projects in Toronto has been a driving force behind the trend.

Benjamin Tal is also suggesting a boom in Toronto and Vancouver and it would restart in 2018. You can read more below.  Should you buy now or in the spring?  Take a good look at the Toronto real estate forecast and the further reading below.

Breaking News: Trudeau to bring in one million new immigrants in next 3 years. Question: where will they live?

Despite government negativity, statistics, the underlying fundamentals of demand along with the ongoing strength of the economy are suggesting an improvement.  That means a prison riot might be coming soon. You’ll find a list of credible reasons why the Canadian housing markets might surge again below.




The experts have been forecasting a Toronto or Vancouver crash now for many years. Hasn’t happened, so perhaps we need to think for ourselves? The market continues with confidence and optimism overpowering persistent negativity the politicians keep pushing out.

How is the US housing market doing? Nervous but very good. Post hurricanes and fires and political upheaval, the markets in Miami, Boston, New York, Houston and Los Angeles are healthy. And 2018 stock market predictions are positive for several years.

Let’s take a look at the factors and the two opponents: our politicians vs strong growing economies. Only one will win.




Let the Housing Good Times Roll!

The IMF and OECD seem to agree, saying Canada’s economy is the best looking in the G20. The case for a Canadian housing boom has some wind in its sails. If political suppression of the Toronto and Vancouver housing markets were to end, the rest of Canada would awaken.

What we don’t know is whether the government will attack  the momentum or let it power the economy further. Currently they’re riding a wave of populism driven by angry renters in Vancouver and Toronto.

But what if that voice faded and the exact opposite public opinion appeared? Justin Trudeau’s popularity has dropped to 25%, Wynne’s pushing towards zero, and that means they may have to reverse course to stay in office. Don’t believe they would do it? Never say never.

Politicians Crushing the Housing Market

Currently however, Wynne, Trudeau and Horgan are holding their own private “let the good times roll” party. Their unwise meddling in the housing market is a threat to the Canadian, BC, and Ontario economies as explained below.

And it’s all for political points that may soon be worth nothing because when you cater to a small select crowd, eventually everyone else wants you out. In truth, only the prices of million dollar estates have dropped a little and the rest of Canada is hurting.

Demand for housing is relentless and Millennials don’t want their dreams dashed. The larger voice will be heard in 2018.




People want homes and these 3 politicans will be booted out of office because of it.  The only ones voting for them are those in Toronto and Vancouver cities. The rest of the country wants to see lower mortgage rates and an improved economy.

A good number of Canadians are weighed down by thoughts of the last recession rollercoaster and don’t really want to go back there. Business people and investors want growth. They’ve got a lot on the line.

And the politicians they’ve discouraged the builders now. So, although everything is in place for a continued housing boom in Canada, these politicians could push us into a mess.



“At this point we do not see any real relief. In fact, the opposite is the case,” writes Tal. “Without significant changes to land and rental policies alongside a dramatic change to housing preference among buyers, those centers will become even less affordable.” – Benjamin Tal in an interview with Yahoo Finance.

Key Factors Supporting a Housing Boom in Canada

  1. global economic winds are positive
  2. Trump will rekindle trade with Canada (he has to)
  3. oil prices rising a little
  4. wages will begin to rise
  5. too many millennials need to move out of the parent’s places
  6. bank of mom and dad has plenty of funds ready
  7. supply is low and builders and construction workers are waiting to build again
  8. the rest of Canada is tried of being kicked around
  9. Trudeau and Wynne severely disliked
  10. China is liberalizing trade and investment with the world
  11. Canada’s economy is going gangbusters (3.6% growth forecasts)
  12. lumber producers would rather sell their lumber here
  13. mortgage rates still low (and there’s no real reason to raise them)

Video: Greg Bonnell of BNN Explains How Housing Prices Can’t Go Down

Strong Economy Usually Means Boom Times

Benjamin Tal may have meant a price boom is imminent because of severe shortages in the Vancouver housing market and the Toronto housing market.  And if prices rise, we may see construction starts also slowly rise and a juiced up housing market would in turn lift the Canadian economy higher.

A synchronized global recovery and rising global trade volumes are backstopping the growth, along with the bottoming out of the oil shock in western Canada and soaring home prices in Toronto and Vancouver — from a report in the Toronto Star.

And prices of oil have climbed, meaning Calgary’s real estate market and those in Edmonton, Saskatoon and Regina might return as well. Fears are that OPEC is solidifying and a war between the 2 biggest producers could erupt. That would bring an immediate boom to Calgary.

Screencapture courtesy of BNN

This is a screenshot below is of historic oil consumption from Doug Rowatt’s post on the greaterfool.ca. The price is forever upward.  Is the time time oil shoots toward $100 a barrel? Some are predicting it.

Forecasters like Oil: “Open interest in $100 call options for December 2018 has tripled in one week to exceed 30,000 lots, according to Reuters.   The $100 December 2018 options is the largest strike for all of 2018.” — from USA today report.

Condo starts have been strong and look to continue. The Toronto condo market and Vancouver condo market will be driven by property investors according to reports.

BNN’s Greg Bonnell Interviews Bryan Yu, Senior Economist at Central 1 Credit Union regarding Vancouver’s perpetual positive market in a past interview. What stands out about the conversation is that Yu says affordability won’t affect prices, and that only an external factor, such as a Chinese implosion would create a Vancouver slowdown. At this point, with Trump’s visit to China, that the Chinese are adapting to global business and are welcoming foreign investment. No reason for a China problem. Vancouver looks great.

What makes Toronto’s condos an attractive long-term bet is the city’s low vacancy rate, which has fueled bidding wars among renters and driven monthly condo rents to an average of $2,074 in the second quarter, up 7.2 per cent from $1,935 a year ago, according to market research firm Urbanation. — from a report by Bnn.ca.




Severe shortages are likely to drive home prices high. Most forecasts and expert predictions are for a flat market for 2018. Yet the economy is strong and looks to get stronger so a flat market is really about sales volume. Prices are so high no can afford to buy houses in Vancouver or Toronto and soon for condos.

It’s Still a Seller’s Market

It’s a seller’s market in 2017 and 2018, and with rent controls suppressing new construction, the pressure will build to create higher prices of resale homes and condos. As wild as Benjamin Tal’s prediction is, it jives with what’s going on in the economy.

Douglas Porter believes the market will heat up too, but his view is that it will end with a housing market crash.

If NAFTA talks go well, which they likely will, the North American and global economies will both grow. That doesn’t fit with some bankers and politicians wishful prognosis of stagnant or reduced prices in 2018/2019.

The latest numbers from Novembers mid month report by ZooCasa shows a surge of listings this month.  This rapid rise in listings in houses and townhouses tells us sellers might be too desperate, overestimating the effect of mortgage stress test changes, and clearly not of the view that the market will climb in spring.

In TREB’s monthly price charts, prices in the core districts of Toronto haven’t fallen. The demand for homes within commuting distance of jobs is high and buyers will likely pay any price. Home prices in the 905 area code have fallen (York Region, Mississauga), but perhaps that’s ready to heat up in 2018. There are still bidding wars and lots of over asking sales happening.

Let’s not forget that many renters and some homeowners will have to leave their current homes, and they will be exposed to a zero vacancy market you normally associate with New York City or San Francisco.



Does This Fall Season Foretell of 2018?

The fall season has been strong, and while the new mortgage rules will suppress demand for more expensive homes, and condos, those under $600,000 will be high demand. That will push prices up. So although some homeowners are pannicking and dumping their houses on the market, demand in 2018 will gobble them all up. Let’s not be distracted by the $3+ million dollar homes in Forest Hill and Mount Pleasant.

The Toronto condo market is sizzling hot and they’re running out of condos.

It’s a simple matter of supply versus demand in Toronto and Vancouver. The only solution is to end anti-development legislation. Vancouver and Toronto have been designated high growth super cities with large numbers of immigrants with visas and foreign students arriving every month. How can that be stopped now?




Government Manipulation Could Create an Economic Slide

If Trudeau and Wynne try to counter rising prices and demand for homes brought on by demographic and economic factors, via policy changes, it may create a bubble and then housing crash in Toronto and Vancouver, cascading right across the country.

In fact, it’s likely that they’ll both be run over be the economic train neither had any part in creating. For Trudeau, it is hypocritical to recruit a million new immigrants and then not help withh the housing crisis.  I think he’ll come around because of this. However, it still leaves the BC and Ontario premiers left blockading the housing highway.

For those who don’t want to live in these modern mega cities, there are other areas of Canada to live. The north is undeveloped, but as more babyboomers tire of the congestion of the city, they’ll be looking for homes, at least for 6 months of the year, in Canada. They may have to go north to find one, if anyone’s building up there.

And they won’t find much relief in Muskoka, Niagara Falls, Kelowna, or Victoria. Prices are up in most retirement cities and they’re rising in Costa Rica, Mexico, Florida and Arizona. Too many people bidding on too few properties. Simple math that seems to befuddle politicians.

Before buying a home or investing in rental income property, get some advice on maximizing your investment. The path you take might be surprising. Expand your search for homes for sale with an intelligent strategy that does more than calling a Realtor.




Before you sell, consider advanced selling tactics that can capture the full interest in your home. The demand for your home or condo is out there in the real marketplace. They just aren’t aware of your property. Marketing is worth many times what you pay for it. Consider the exposure of your property on Google, Google adwords, Facebook ads, in addition to your MLS listing. Don’t be timid. Power it up!

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Vancouver Condo Market Still Booming – Condominium Prices Rise – Burnaby Richmond Surrey

Vancouver Condo Market Still Booming

Last September’s market report for the greater Vancouver region confirmed that the Vancouver real estate market is still smoking hot. Residents and condo investors are hunting for bargain properties as are students studying at UBC, Langara College and SFU. Demand is high.

The new sales and price numbers below from Royal Lepage, CREA, and REBGV may depress you a bit if your ambition is to own a new or resale condo in the city or even to rent one.

Money Has Moved to the Condo Market

Sales of detached million dollar homes have abated, yet it’s just a switch to a focus in condomiums in Vancouver. This switch has also happened in the Toronto condo market. The challenge for condo buyers is finding on at any price level they can afford. I’m sure you’re finding the rental housing and condo buying situation very difficult and you may find Surrey, Richmond, and Langley your best bets.

Prices of condos have jumped as much as 35% in some areas, and overall prices of apartment condos in Vancouver have jumped an incredible 21.7% from last September. In September CREA reported condo apartment sales growth of 19% in greater Vancouver above that of September 2016. Will that continue in 2018?




Housing Crash in Vancouver? Not Likely

There’s been a lot of talk about housing market crashes in 2018, but wishful thinking might what’s behind it.  At this point (October 2017) experts forecasted that housing markets across North America would be in a crash or deep decline, but it hasn’t happened. It probably own’t here or in US housing markets.  Demand is high and the economy may get stronger.

Condo Sales September 2017 in Vancouver

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in the region totalled 2,821 in September 2017, a 25.2% increase from the 2,253 sales recorded in September 2016, and a 7.3% decrease compared to August 2017 when 3,043 homes were sold — from CREA October report.

There were a total of 1491 apartment condos sold in September with an average HPI benchmark price of $635,800. the price growth over the last year is astonishing with North Vancouver and New Westminster leading.




Vancouver Community Price Growth Over Last 12 months Average Price September 2017
Listings in September 2017
Greater Vancouver 16% $751,861 823
North Vancouver 25.2% $614,173 175
Burnaby 24.6% $561,558 262
Coquitlam 23.8% $482,300 78
Surrey 18.5% $304,779
Langley 17.8% $337,782
Victoria 28% $471,682
West Vancouver 2.2% $1,112,334 42
Richmond 15.6 $510,476 294
Kelowna 20.2 $399,783
New Westminster 26.5% $488,600 167

The numbers above suggest Richmond, Surrey and Burnaby are where you’ll find an affordable condo. Surrey and Langley may be the future. You’ll find a lot of student housing new construction projects in this area too close to the skytrain and the major schools. Unfortunately, you will be competing with the families of wealthy students for the units who are searching off campus.

Vancouver Condo Prices and Sales Stats Screenshot courtesy of the Real Estate Board of Greater Vancouver




How Do the Forecasts Look?

With the economy faring better, most forecasters may even upgrade their 2018 forecast for Toronto housing and the Toronto Condo market forecast, along with the Vancouver region forecast which are the only housing markets doing well.  The rest of the country is hanging on with spillover from the big cities.

When the foreign buyers tax was implemented in BC and Toronto, I suggested that instead, incentives should be provided to property investors and builders to build in areas outside of Vancouver and Toronto. Unrealistic? Long term, it benefits everyone.  These housing shortages are significant economic and personal issues. It could end in a crash.

Still the spillover has helped Kelowna, Calgary, London, Waterloo, and Ottawa.

Crisis for Condo Renters in Vancouver

The situation for many renters is definitely a crisis. There is an exaggerated need for rental properties and housing for students.  One estimate is there are more than 24,o00 families in need of housing in Vancouver and many of them may involve students studying in colleges in Richmond.

Recently 300 buyers showed up to apply for a few coop units up for sale.  If new builds decline because of a fear of rent controls and then Canadian interest rates rise, this could make the forecast gloomy.  Vancouver residents need to get more active and encourage local politicians to adopt a new attitude toward the crisis.

A new socialist driven research project called Cambie Corridor is being conducted to see if a restriction on development to force lower rents will work. In a few years, we’ll have data, but in the meantime, why would the condominium builders not just stop building in Vancouver?  Builders need incentives, where that is just a money losing proposition. They can’t create $850 apartments in Vancouver’s pricey atmosphere.

There’s a lot of belief in magic in some government quarters but the current crisis shows how badly mismanaged housing in Vancouver is.

The city awash in beautiful condo buildings however the units are out of reach of most buyers. One could ask who the builders are building for if few are able to finance them?  New government housing projects could create coop affordable units, but would they turn into another LA styled Watts neighbourhood, with crime and malaise?

Now we understand the wish for a Vancouver housing market crash.

Failing Governments in BC and Ontario Need Ideas

The previous BC government failed badly in using old school tactics to solve an International level challenge.  Rightfully, they were ousted, and now we’ll see if the NDP can actually deliver on their promise to lower income buyers and renters. Supply must be increased in Vancouver as the city just gets more popular.

And for most homebuyers in the Vancouver area, detached houses aren’t even a thought since the average price has hit  $1,617,300 which is up almost 3% since last year.  Condo hunters will have to be more persistent, patient and creative to land a condo to call home.

A solution that may support increasing availability is to open up land for development outside of Vancouver up the coast and out on Vancouver Island, or into the interior. With Federal and BC government incentives and tax support for this (take it from the foreign buyers levy — $billlions of dollar tax grab for what purpose?.   This could be used to draw businesses out into new outlying communities.

Many businesses don’t actually need to be in Vancouver. If they had an opportunity to move somewhere cheaper, they’d do it. They’d get away from the congestion too. People want to live near the jobs, thus moving  the jobs outward will take the pressure off and open up amazing new cities across BC.  Places like the Comox Valley and Sunshine Coast and Nanaimo would welcome the growth.



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Canadian Economic Forecast 2018: IMF and OECD Gives Canadian Economy Two Thumbs Up!

The Canadian Economic Forecast

The International Monetary Fund says Canada is the leading G7 Country

How odd is it in 2018, that a country on the verge of trade wars, real estate collapse in its major cities, flat wage growth, mediocre job growth, merciless consumer debt, and a sagging national housing market would be cited as the G7’s darling child?

In a new report just released, the IMF likes Canada’s economic situation and they’ve forecasted some lofty economic growth rates. Quite a rosy prediction for 2018 and beyond

Their confidence could impact the Toronto real estate forecast, | Calgary Housing Market Forecast and the Vancouver real estate forecast for 2018. And it could end the talk of a real estate market crash and begin to attract foreign investment into Canada once again.

Growth of 3.6% to 3.7% Predicted

For entrepreneurs, mortgage agents, realtors, manufacturers, retailers, builders, renovators, homebuyers and banks, this is a positive signal about growth ahead. Trump is looking to renegotiate NAFTA which doesn’t mean shutting out Canada.  The negative media hype is ridiculous. Even with renegotiation, Canadian small business has a good opportunity. If Trump has an issue, it’s likely with the multinationals who continue to rule everything including politics.

Despite sluggish growth for its major trading partner, the IMF believes Canada is poised for growth of 3.6% this year and 3.7% in 2018. That has to sound good for job hunters, real estate agents, mortgage agents, house buyers, and business development managers alike.




Underpinning all the optimism is the IMF’s belief in a broad-based global economic upswing. Does this mean the world has adjusted to US trade protectionism, or is Trump actaully unable to do anything about the US situation? The IMF points to Trump’s inability to get new tax laws passed and to the level of optimism globally. With Trump’s new tax bill passed, the US stock market could boom for at least one more year, and that’s good news for the Canadian economy.

This might come as quite a surprise to most of us who haven’t heard such a rosy forecast for the world as a whole. However, much of the uncertainty of housing and stock markets was of a global nature and it may be subsiding.

An earlier report from the OECD set Canada’s growth rate at 3.2% for 2018. Strangely, although Canada is believed to be the leader, overall global growth is set for 3.7%, a half percent above Canada’s forecast rate of growth.

The OECD is also calling on Canada to ease foreign investment restrictions and ease the Toronto/Vancouver housing crisis. Given that Canada is mired in the lowest levels of foreign investment ever, it would be healthy for the Vancouver and Toronto housing and condo markets along with the TSX stock market if such investment was allowed to flow.




The OECD also cites Canada’s lack of productivity as a big concern, however it appears the country has been able to make use of its assets to generate growth.

A BNN poll found that most viewers believe tax rates and the NAFTA deal are the key worries about the Canadian economy.

Canada’s Economic Facts

  • growth in 2nd quarter of 2017 was 5%
  • household spending was up 4.6% in June (YoY)
  • job growth was 186,000 over the first half of 2017
  • exports expanded 9.6%
  • central bank only expected to raise interest rate slightly
  • national trade deficit increased to $3.4 billion in August

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Housing Options for Foreign Students Studying in Vancouver – Off Campus Communities

Studying in Canada? Off Campus or On Campus Housing Options

Canada is quickly becoming the preferred choice for obtaining a Western education, for students and their parents across the globe. And Canada is welcoming as many as possible.

Within a few years, some 450,000 students will be in Canada studying and many will want to immigrate to Canada permanently. These educational programs for foreign students do provide a good source of new workers, badly needed in a small country.




However, what you’ll discover when you arrive here to check out cities such as Vancouver, is the severe shortage of student housing.  On campus or off campus, the issue of finding a place to live is a challenge. Some colleges such as Kwantlen Polytecnic, have no on campus housing for students.  Some of the housing solutions may or may not be for you depending on your financial resources and your tolerance for crowded living.

There are programs such as Homestay Canada who place students with homeowners who wish to offer a place in their homes for a monthly fee (e.g., $1000 per month). And there are private businesses who offer the same services. On campus solutions might include tiny units such as these units on the UBC campus, however these units renting at $700 per month could be difficult psychologically.

Screenshot Courtesy of the Nationalpost.com

Hosteling and Billeting in Vancouver

The hosteling or billeting opportunities represent a good deal of risk for both the Vancouver homeowner and the arriving foreign student. In some cases, a deposit or prepayment of a full year’s rental payments is required.

Sometimes these businesses run into financial problems and no longer can pay the homeowner. Without payment, the homeowner is no longer legally responsible for housing the foreign student. Many parents of the students fear their kids may end up homeless and in danger. That’s not a situation conducive to good study and high grades in class.




A better solution for anyone wishing to study in Canada, is a larger company with the financial resources to manage the student rental agreement well. A well financed company such as CIBT in Vancouver has $600 million in properties, much of it in Vancouver BC. CIBT has been operating student housing communities and services since 1994. They have the experience and the reputation that gives foreign parents and students the confidence they need to come to Canada and achieve their educational and life goals.

CIBT Serves Students in Vancouver Colleges and Universities

Colleges and Universities that welcome foreign students include UBC, Langara College, Kwantlen Polytecnic, Simon Fraser University, Vancouver Community College, and OMNI college. CIBT manages a number of educational services as well. You can learn more about CIBT and the student housing opportunities they can offer.

Learn more about CIBT’s properties include the Global Education Communities which have become very well known and in demand. While living in the GEC communities, students can socialize with those from their own country and learn to speak English better before embarking on post secondary programs. Their buildings are close to the skytrain and shopping and other conveniences you’re hoping for.

You’ll be Welcome in Canada

The education of foreign students is something most Canadians approve of and we enjoy hosting those from places such as Hong Kong, Dubai, Rio De Janeiro, Singapore, Kuala Lumpur, Tokyo and the world’s rising top cities.
If you’re planning for a Canadian education, Vancouver likely will be your first choice. It’s beautiful, modern, but expensive with limited housing availability.  The Vancouver housing forecast is for continued high prices and low availability of homes and condos which translates to very high prices.

Everyone wants to live in Vancouver so expect prices to be high.

This post is not intended as professional investment advice. Prospective investors should speak with a licensed investment advisor and review closely the prospectus of any student housing investment fund.

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Investing in Student Housing – Off Campus New Builds

Investing in Student Housing is Hot!

A few months ago, the Canada Pension Plan’s Investment Board bought $2.1 Billion worth of student housing properties in the United States. The joint venture, with partners in Singapore and Chicago now owns 48 student housing communities with a total of nearly 32,200 beds.

Image Courtesy of Amazon.com

That mega-investment gives you a heads up on the one of the best real estate investment opportunities going – Student housing investment.  According to one report, student housing investment in 2017 is expected to equal the torrid rate of 2016.

Student housing portfolios might outperform everything especially in cities such as San Francisco, Vancouver, and Toronto. With housing very rare and rental prices exceeding $1400 a month per student, the revenue numbers begin to look promising.

You might be skeptical about risks and management costs, yet the off campus student housing investment opportunity can include hiring property management companies. New purpose-built student housing communities offer a superb investment potential whether you invest in the investment firm, like a REIT, or if you buy a unit yourself and rent it out.  Rumours of 10% to 14% ROI make it worthwhile to investigate.

In the US, land use agreements are growing and student housing projects grew $3 Billion in just half a year during the first part of 2016 according to a report from realtor.org.

CIBT Group Inc. Vancouver

I’ll introduce you to CIBT Group in Vancouver whose holding company manages $600 million in properties, communities, education services, and other services related to foreign student housing in Canada.

Bruce Campbell of Stone Castle Investment Discusses CIBT on BNN

These on campus and off campus communities are very attractive to foreign students since they attract other students from their native countries.  Students feel more comfortable and their parents prefer to rent or buy these condos because they feel their son or daughter is more likely to succeed when they have comfortable living arrangements. It all makes good sense. The new purpose-built condo projects in cities like Vancouver are on their wishlist.

The shortage of condos in Vancouver and rising prices ensures demand for these properties/investments will stay strong. You may have to be invited to the investment education meetings first.  Here’s an example of an invitation to the recent Viva Tower open house.

Vancouver and Richmond BC have a large number of colleges and universities in close proximity. This means the condos can house students from multiple post secondary institutions. UBC, Kwantlen Polytecnic, Langara College, OMNI college, and others are located in the city of Vancouver. And as we know, Vancouver real estate is in big demand and the focus has changed to the condo market.

New Builds and Pre-Construction Student Housing

Most built projects are fully bought and there’s little opportunity to purchase now. New preconstruction projects are where you can get in on this booming investment in student housing. CIBT Education is the leader in this field in Vancouver. They have a large portfolio of projects which you can invest in shares. This gives you the opportunity to capitalize on this booming market without owning individual properties and being responsible for upkeep and rental management.

If investment is a more attractive option for you rather than buying condo units outright, you can learn more about availability and ROI etc, from Joyce Soo of Sutton Group Seafair Realty in Richmond, British Columbia. She can be contacted at (604) 273-3155.

This post is not intended as professional investment advice. Prospective investors should speak with a licensed investment advisor and review closely the prospectus of any student housing investment fund.

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Student Housing Investment Canada – CIBT Global Education Vancouver

CIBT Education Group Inc.

There aren’t many organizations that focus on the student housing investment market. CIBT is one of the best and biggest, and they have assets and opportunities in Vancouver.

CIBT Education Group Inc. is one of the largest education and student housing investment companies in Canada.  It’s growth has been impressive over the last 6 years. They’ve been focused on the global education market since 1994, and own and operate several International schools that offer a variety of training and education services. They currently serve 15,000 students annually. CIBT is listed on the Toronto Stock Exchange.

GEC has developed a network of serviced apartments and hotels throughout the Metro Vancouver area, each at a centralized location and within approximately five minutes walking distance from a Skytrain station.

Viva Student Residences Vancouver
Screenshot courtesy of Global Education City, and studenthotel.ca
17 Storey Viva Tower is located conveniently in Downtown Vancouver BC near Stanley Park, with views of mountains and marinas.

CIBT’s property investments amount to over CAD $600 million and are owned by Global Education City Holdings, which is an investment holding company. CIBT is known for many services, however its business goal is the creation rentable student housing, and this is measured in beds not rooms or units, nor condos. CIBT’s goal is to reach 10,000 rentable beds in its vast portfolio of properties.

The Viva Luxury hotel tower has been renovated and converted into a student housing community and is an impressive image to attract foreign students.

What makes the city of Vancouver a focal point is its proximity to the Asian student market.

CIBT attracts students from across the globe, but the larger demand for International student education is from Asia (China, Hong Kong, Indonesia) and they prefer Vancouver due to cultural, safety, cost, and climate and lifestyle preferences. It’s hard to argue against Vancouver’s attractiveness to foreign students. It’s rated as one of the most beautiful cities in the world, and has endless recreation and shopping venues.

CIBT has wisely positioned itself as the premier business in student housing investment in Vancouver. They have extensive marketing reach in the Asian countries.

You’ll notice in this video that the accommodations are a far cut above the usual student dorms and off campus living situations.

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This post is not intended as professional investment advice. Prospective investors should speak with a licensed investment advisor and review closely the prospectus of any student housing investment fund.

If you’re curious about student housing investing, please contact Joyce Soo of Seafair Realty in Vancouver at 604 273-3155.

Beautiful Condos in Vancouver

The Newest Condominium Developments in Vancouver are Amazing

If you could move anywhere in Canada, I’m betting that Vancouver or Victoria or Kelowna might be first on your list.  For many young and old migrants they are the destination and that’s pushing up condo prices for houses and condos here.

The climate, economy, lifestyle, culture, nature, and recreation here has made Canada’s West coast desirable for decades for Canadian retirees and now for new residents from around the globe. Its changed the culture and reputation of British Columbia and Vancouver. The 2010 Olympics played a big role in that.

Despite the alternatives of Costa Rica, Mexico, Florida, and Arizona, BC has a special allure for the modern retiree who has few plans to sit around. And for others who want to continue working, Vancouver’s economy in particular should keep them busy and open up new career possibilities.

Vancouver’s Wealth Inspires Modern Luxury

Yes the world’s attention has been on Vancouver real estate for some time now.  While the cost of condos here is rising as fast as the skycrapers, the lack of land and housing availability in Burnaby, Richmond, Surrey, and City of Vancouver ensures demand will be strong for condos as rental properties or homes. Builders and investors are smiling.

In September 2017, the average price of Vancouver Condos hit an all-time high at more than $872,000 CAD.  Condo sales are up 21% YoY and condo inventory is down 34.4%.




Housing here is some of the most expensive in the world so investors and condo buyers are focusing on condo apartments, just as they are in Toronto or Miami. The influx of immigrants and foreign students in Vancouver is making the condo market even more heated. Builders are at least trying to respond with a new attitude toward condo living.

Global Investors Love Vancouver

Investors and buyers from around the world are excited with the beauty of the luxury houses and condominiums being built here. Designers are breaking through tired, outdated design concepts to create places people actually want to live in.

There are few 4k videos of new condo construction available, but let’s have a quick look at one prestigious condominium in Vancouver.

Vancouver residents are exhausted from the high prices and believed it was only Asian buyers who were driving condo prices up. The truth may be that Vancouver is now a world class city, perhaps the most beautiful place to live on the planet. Combine Canada’s booming economy and the seaside/mountain lifestyle and how could it be a surprise that everyone wants to move here?

How many cities offer world class restaurants and museums, mountain hiking and snow skiing, ferry rides, biking trails, mountain biking, kayaking, watersports, seaplane tours, coastal train rides, deep sea fishing and more all within a half hour city drive? I could spend all day just drinking coffee and watching the seaplanes coming and going. Vancouver’s fascinating attractions just never seem to end.




vancouvercondosblocks
Ole Schearen’s Proposed tower at 1500 West Georgia Street breaks condos out of the boring mode. The building will have offset apartment modules and outdoor terraces which offer exhilarating views of the city.

The views of the greater Vancouver region and the lack of housing availability may be the key engines of the drive to the sky.

Asian buyers in particular only want to live in Vancouver and that’s pushing up demand for condos keeping Vancouver realtors very busy. Fortunately, they’ve got all of these stylish condominiums below and more to choose from.

And while we’re on the topic of condos, there is a growing demand for student housing in Vancouver. And that has drawn substantial interest in Vancouver’s condos as student housing communities. Recently CIBT converted the Viva Tower Hotel to luxury student accommodations.

And due to severe land shortage, Vancouver’s condo architects and developers must design with higher density in mind. Now the reach for the sky begins, with some people agreeable to erecting 1,000 foot tall skyscrapers to help Vancouver “grow up.”   That’s already occurred in Toronto, however the new Vancouver condos are truly awesome.

Before we soar above Vancouver, you might also like the low rise condominiums too:

 




And the neighbourhoods such as Coal Harbour and False Creek are a big part of the draw giving new residences a much better living experience.

coalharbour5

Trump International Hotel and Tower
Trump International’s newest development looks amazing. It’s coming along well toward completion. Located in Vancouver’s Coal Harbour area, this 63 story high mixed-use development features 217 and residences and a luxury hotel with 147 suites.

trumptower2

trumptowersuite

Lavish Luxury in Coal Harbour

This $18 Million Penthouse has plenty of ceiling room and panoramic views. You’ll never get bored of something to look at on the 48th floor of The Private Residences at the Hotel Georgia. You can watch ships float up English Bay and see all the way to Vancouver Island’s mountains.

vancouver-condo-coalharbourpenthouse18

The Fairmont Pacific Rim Hotel

This 47 story reinforced concrete and post tension slab tower has 415 guestrooms on the bottom 22 floors and 175 residential units above. The top floor unit sold for a record $25 million but offers amazing views of Canada Place.  pacific_rim_penthouse

Terraces at the Peak at SFU by Intergulf

This new construction project is an amazing location in Burnaby as the pics below attest. The 13 storey building features 117, 1,2 or 3 bedroom condos up to 2000 sq ft. It may be sold out by now, however you can find out more at their website. Definitely worth a quick visit.

Image courteys of www.terracesatsfu.com/
Image courteys of www.terracesatsfu.com/
Image courteys of www.terracesatsfu.com/




One Harbour Green

This building was completed in 2006. It offers 57 suites on 23 floors. vancouvercondos-One_Harbour_Green

The Arc by Concord Pacific in Yaletown

Concord Pacific’s very creative architects and engineers have built something so unusual, modern and luxurious, it’s beyond words.  This building wins my award for this most luxurious and well architected condominium in Vancouver.

vancouvercondosthearc2

vancouvercondosthearcpool

vancouver-thearcbyconcord

First Baptist Church Residential Tower

It’s in the works, a 56-storey zebra-like tower in downtown Vancouver situated next to a church.  It will contain 295 units. It was designed with an external channel to reduce heating/cooling costs and allow residents to socialize.

vancouvercondos-969-Burrard_5 vancouvercondos-969-Burrardchurch

Shaw Place on the Harbourfront

Shaw Place stands 483 feet high.  The lower 16 floors of the tower are offices while the upper 24 floors have 130 work-live condominiums. One of the most attractive features of living on Coal Harbour is that it’s next to Harbour Green Park, the Vancouver Convention Centre and Vancouver’s famous Seawall.

vancouvercondo-shawplace

99 Pender

99 Pender will be a uniquely shaped tower at the crossroads of the business district and historic Chinatown and Gastown in downtown Vancouver. It is in the proposal phase presented by two developers and Bing Thom architects.

vancouvercondos-pender-conc

Vancouver House

Vancouver house is a 56 story twisting structure which seems to shy away from the Granville Bridge to tower over  Howe Street.   The condominium development will offer 407 condo units, 95 rental units, 80,000 square feet of retail space and 77,000 square feet of office space.

vancouver-condo-vancouverhouse

Tower Green West

Tower Green’s unique value proposition is sustainability, energy conservation, water efficiency, occupant well being, located in Coal Harbour. The waterfront, shops, and good access via the aquabus makes it a very different way to live.

vancouvercondo-Tower-Green-West

vancouvercondostowergreeninterior

 

Just one more beautiful condo building to see, but this one is in Victoria BC. This is my idea of the ultimate condo, mid rise with amazing views.

The Janion

Over looking Victoria’s Inner harbour is the Janion, a fusion of past and present. The front of the building is restored brick structure while the back is sleek, modern with endless windows.

vancovercondosjanion

vancouvercondowaterfront

vancouvercondosjanion

Have a good at some amazing Toronto Condo projects too.

Are you a condo developer or condos resales realtor who wants to build leads online?  I offer dedicated digital marketing services which can’t be delivered by low price automated marketing companies. Everybody wants to build a tech startup in marketing, but what they’ve forgotten and what you know, is that high quality content and engagement are too important. And your customers can tell.

A more desirable alternative to taking in an in-house college grad, is to hire a dedicated Vancouver SEO consultant. We can build the most cost effective yet productive digital marketing results in any market from New York to Vancouver.   Check out the hot market forecast of Toronto mls housing and real estate construction and sales for 2017. And watch the US housing market forecast for the next 5 years.  

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New Business Development – Vancouver BC Canada

Vancouver – Canada’s Golden Child is Growing Up

Many of my US clients have commented that they believe Vancouver is the best city in the World. It might be hard to argue against because not only has Vancouver become more beautiful, it’s also become an economic powerhouse.

Vancouver has the type of issues you find in Boston, New York, San Diego, Miami, Los Angeles and the SF Bay Area. Costs are almost out of control. People and businesses want to move to Vancouver because of the lifestyle and opportunity. Companies in these cities need help. And there are entrepreneurs ready to buy businesses here, such as Speedy Auto Glass tycoon Garry Skidmore.

It’s not just to save money either. They actually can’t find competent service providers due to high costs and unavailability. Vancouver does have good providers, but not many of them. New providers haven’t caught up to demand.

The cost of housing in Vancouver is sky high and those costs can drive away many needed businesses. So Vancouver companies are looking for help.

Vancouver’s Economy is on FIRE

As this report on Business in Vancouver shows, certain industries are propelling growth on Canada’s west coast. Real estate in Vancouver took a little breather but the forecast is for more growth.

Screen Capture courtesy of Biv.com

If you’re in the insurance, finance, or real estate sectors, the promise is pretty clear. But for any company willing to help in BC’s growth in trade, marine farming and manufacturing, forestry products, travel and tourism, hotels, and construction, you’ll get plenty of attention.

Vancouver saw its strongest job gains in history last year… You had record employment growth last year of 60,000 jobs created. It just blew past the previous record”  “Although housing is a major economic driver, Vancouver’s high-tech, tourism and film industries have also seen strong growth, and so has manufacturing, thanks in no small part to the $8 billion shipbuilding program underway at Seaspan” – from a report on Biv.com.

In my experience BC is a unique environment and tougher to crack. You will need to drill down and build a real presence here at some point. The Asian presence is strong in real estate and finance and that can present barriers too.

Bottom line is that Vancouver businesses need help and you business could make a difference and a good deal of profit.

US Buyers Guide to Canadian Real Estate

Canadian Real Estate Buyers Guide!

Buy or sell when the market is moving. With the Tax Cuts and Jobs Bill, the US economy is surging. Tax cuts mean Americans will have more money, yet the US real estate market isn’t as attractive anymore.

US real estate prices may fall while the US dollar is falling in value.  Investors are looking for better investments, and although the Toronto and Vancouver markets are stagnating at present, they will likely start to surge in June.

With the prices of oil and Canadian interest rates up, the Canadian dollar is rising (now over 81 cents US). That makes Canadian real estate a worthy in investment, particularly as a rental income property in markets where rental units are shrinking.




The fall of the US housing market and Canadian housing market have been heading in opposite directions as we enter into 2018. With the US dollar forecast to fall, Americans may improve their capital gains in the Toronto, Calgary or Vancouver markets.

The 25 cent bonus on the USD/CAD exchange rate at a time when home prices are in a temporary lull could give US property buyers a 30% premium or more when purchasing homes or condos for sale in Canada.




That’s not all. Right now in early 2018, outside of the Vancouver and Toronto regions, in cities such as Edmonton, Calgary, Saskatoon and St Johns, real estate values are very low, giving you even more purchasing power. Experts are suggesting prices will go much higher due the housing crisis. Homes and Condos are in short supply and are bought quickly.

A 25% Bonus:  It’s a very positive environment for investors and well worth learning more about.




If the Canadian economy grows alongside of the US economy, we could see very ideal conditions for buying Canadian homes, condos and cottages, and even rental property during the next 6 months in Canada.

You  may never have such amazing purchasing power for your money again. It’s worth it to contact a realtor here in Canada and inquire about homes for sale.

Prices are rising moderately in Toronto, but there are homes for sale in all regions. You can check now for new homes for sale in Toronto, Mississauga, new homes in Vaughan, new homes in Newmarket, and Bradford just outside of Toronto. Why Toronto?

Do you know anyone looking for a safe investment with a 30% ROI that’s growing? Make sure they see this!




Vancouver has a foreign buyers tax which will erode your return and wealth. Vancouver is discouraging further investment. They don’t want your money. Toronto on the other hand is open to such investment and has a huge number of Toronto condos being constructed.

There are huge housing developments such as in Vaughan and Bradford where thousands of new homes are being built. If you prefer new properties to rent out, as an income investment, this might be a good target for you. The hot ticket for investors right now is rental property investment.

Your Guide to Real Estate Investment Opportunities Here in Canada

The purpose of this guide is to make you aware, and give you some information on how to go about investing in real estate in Canada.

Liberal Foreign Ownership in Canada

Canada is a politically stable, low risk and safe place to invest and it is open to foreign investment. While some provinces have limits on foreign ownership of land, Canada is for the most part wide open to foreign real estate investors. There are no taxes on buying property in Canada, however you will be taxed when you sell. With Canadian mortgage rates so low right, and with not much increase expected, it may be wise to use a Canadian mortgage financing company to purchase your property. However, you could use your own bank.

To understand all the legal requirements necessary to buy property in Canada and obtain mortgage financing, it is wise to contact a licensed Realtor in Canada.




Best Places Buy Homes in Canada

The investment landscape is always changing and certain regions of Canada are amidst different circumstances. Vancouver has just gone through a real estate boom and the local government has imposed taxes to discourage foreign investment.

Toronto is a very hot real estate market and low housing availability and other conditions will keep prices high for sometime. Prices in the greater Vancouver and Toronto regions are high.

Canadian government policies have sought to restrict first time buyers who may lack the financial resources and be carrying too much debt to buy a home. This is a precautionary measure and may impact your attempt to obtain financing from a Canadian bank or mortgage company.

Kelowna BC is not impacted by a foreign buyers tax and is currently in high demand. Calgary and Edmonton’s real estate market is flat and could represent an ideal purchase. However, the oil and gas sector may not return to health for many years. Areas and towns outside of Toronto have not seen the huge price increases, thus may offer better ROI than a condo in downtown Toronto.

Finding a Good Realtor

There are tens of thousands of Realtors to choose from in BC, Alberta and Ontario, however most are inexperienced agents without connections, expertise, market knowledge, or marketing power, and other are near retirement with insufficient motivation to work hard for you. To find a good real estate agent, you’ll want to review their online presence. Do they have at least one website and social pages where you can get to know them? Transparency and marketing effort are important.
You can search for a Canadian realtor line via google.ca, or through realtor.ca, or reco.on.ca. Ontario realtors are licensed and governed by RECO or the Real Estate Council of Ontario. You can get answers to a lot of questions on the RECO website, however, you’d be better advised to speak to a Realtor to save some time on your information search and avoid becoming confused and demotivated.

Your interest in buying Canadian real estate is wise. Keep your intent alive by speaking to a real, licensed Toronto area Realtor right now.




Realtor™ and Legal Fees

There are negotiable and set fees when buying real estate via a Realtor™. The realtor will typically be paid up to 2.5% of the sale price of the property. The buying agent and selling agent will split up to a 6% transaction fee. However, there is no limit on Realtor™ fees. It may be wise to avoid a Realtor™ who charges low fees, as they may be reluctant to put a good effort in for you. That lack of time and resources could translate to poor buying decisions. Given the massive return on investment possible during these times, it’s wise to pay a Realtor™ their normal fee so you receive their full attention and support.

Other Fees

When you purchase a home or condo, new or old, you may be required to pay a deposit, appraisal fees, home inspection fee, survey or certificate of location cost, title insurance, land registration fees, water test, septic tests, Estoppel Certificate fees, and condo or strata fees, property taxes. This is why hiring a knowledgeable Realtor™ is wise. No purchase of real estate is without risk.

Financing

If you need financing to buy a property in Canada, you can obtain it via Canadian banks or what’s called the secondary mortgage market. Banks or mortgage brokers are a good choice depending on your credit situation. These lenders are more amenable to lending when the property is located in Canada. Secondary mortgage lenders may require more collateral and charge higher mortgage rates and fees, while banks may not lend you money if you are considered to much of a risk. You will need to provide documents related to your financial wealth, income and credit worthiness when you apply for a mortgage in Canada.

You can also use US banks for financing and the advantage is that you have a credit rating in the US, which US lenders might have more respect for. However, legal agreements between the US and Canada, give lenders the ability to collect on debts, so don’t think that because the property is in Canada, that it’s an issue. The lenders know they can foreclose on the property if you’re in default of payments.

You may have to pay a down payment of up to 35% of the property. It’s important to remember that is hard to verify credit worthiness of a foreign buyer and more challenging to collect on money’s owed. You can expect to pay higher rates because of the increased risk.

Canada’s CMHC offers mortgage insurance for home buyers who can’t pay the normal downpayment requirement of 20%.

Housing and Capital Gains Taxes

On purchase, you don’t have to pay taxes on property. Taxes such as the Ontario land transfer tax, Toronto land transfer tax, and British Columbia’s foreign buyer tax are payable by the seller. However, they do raise your purchase price since the charge will be passed onto you as part of the purchase price.

Non-Resident Income Tax: You will be subject to a non-resident withholding tax of 25% of the gross sales price. You can request to have the non-resident tax withheld on the net capital gain on the disposition instead of the gross sales price.  You can fill out the required forms with the Canada Revenue Agency and also obtain a Certificate of Compliance. You must notify RCA within 10 days of selling the property.

Canadian Mortgage Insurance

If you finance your home and need to take out an extra loan to help with the downpayent, you are required to purchase homebuyers mortgage default insurance. Canada’s CMHC provides mortgage loan insurance that enables you to buy a home with a minimum down payment starting at 5% of purchase price. Find out more at CMHC.

If you finance the purchase, your mortgage provider will require you to carry homeowners insurance to protect the value of the home or condo.

Putting an Offer on a Property

To find a good home, condo or property to buy, read the homes for sale tips page to whet your appetite and gauge the prices and types of homes available here in Canada. Areas such as Toronto, Mississauga, Newmarket and Vaughan are ones you may feel safer in investing in. Visit the pages covering new homes in Newmarket, new homes in Bradford, and new homes in Vaughan to learn more about housing developers here.

An offer is a formal, legal proposal to purchase a property. You can put forward a written offer to purchase with it may be a conditional one or unconditional one. Conditional ones have to do with on approved financing or the repair of certain features of the property before title transfer.




Your purchase offer, created and reviewed by your Realtor™ and real estate lawyer will often include:

  • your name, the name of the person selling the home and the address of the house or condo
  • the price you are offering to purchase
  • any items in the home that you want to have included in the purchase price and repairs that must be completed
    financial details, such as the amount of the deposit you are including, any payable interest on that deposit, and whether you’re paying a straight, all cash payment
  • the details of your mortgage financing
  • the closing date for the sale and the date of possession of the property (normally 30 to 90 days from the date of the signed agreement)
  • a request to the seller for a copy of a current land survey
  • the expiry date (the date the offer ends any conditions you demand such as passing a home inspection




Accepting the Offer

The buyer can and often will make a counter offer to yours. The market in Toronto and Vancouver is scarce giving buyers the ability to demand a higher price. If the seller accepts your offer, then on closing day (date you take possession), your lender will forward the moneis to your lawyer or notary all the money from your mortgage. You will also provide to your lawyers, your down payment usually with a certified cheque. The lawyer or notary will then pay all the fees and other costs for you, and send all the money to the seller’s lawyer. Your lawyer or notary will then register the property in your name, and send the deed and keys to you.

The property is now yours and you are considered the title owner of the property (as governed by the Ontario land titles system), registered in the specific province where you bought the property.

The Buyer’s Guide to Buying Canadian real estate is presented as a helper to give you an overview of how to buy property in Canada. For accurate advice and legal counsel on purchasing property, please speak with a licensed realtor or real estate lawyer.

Best Cities to Invest In Canada?

 

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Learn more about the 2 hottest housing markets: The Toronto Real Estate Market and the Mississauga Real Estate Market.




The above information is not intended as professional advice to buy or sell property, but only as an encouragement to seek out the assistance of a licensed Realtor, Canadian investment advisor, mortgage broker or other professional for you to explore current opportunities. Political, legal, currency and other factors may reduce the return you receive on your real estate investment.

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