Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.

1 million for such small box condo what is wrong with people

Don't feel sorry for those so-called investors. They are the reason that brought up housing prices in the first place to the point nobody can afford them.

Who figured that buying a million dollar condo could be flipped? This is crazy risk buying

The only good deal is not buying a condo and leaving the box carton city of Toronto.

More immediately than a collapse in the real estate or stock markets, inflation directly impacts people's standard of life. It is hardly surprising that the present market attitude is so negative. If we are to live in this economy, we are in dire need of assistance. ETF and stock markets are still unpredictably volatile, just like the housing market. My $350k" portfolio has been reduced to rubble.

Fastest growing city.....but the people we are bringing in have no money.

I was speaking to a renters agent in Toronto who did a lease with me and she told me her clients had bought studio apartments in precon in the area (Yonge/Dundas) at 750k and were coming up for mortgages soon. 750k for 400 sq ft studios!!!!

I have 3 kids and a wife and rent a townhome for 3600/month . It does not leave me any money to save for a downpayment

Better think about an insulated tent near a food bank.

As a first time (maybe) buyer, I approve these losses.

These prices per square foot are ludicrous even after the reductions! Condo prices in Florida are falling and prices per square foot under $150.00 are available.

I’m not even involved with this “fuckery” and this video hurts. I looked at one pre con project early 2000’s and did not pursue b/c I couldn’t digest the #’s.

There are 2 different condo markets right now. The one that is hurting is the one focused on investor because all of the units that are losing money and not attracting attention are those generic and small condos that were designed purely for rentals, not for an owner to actual live in. I'm in the market to buy right now and I don't even bother looking at those kinds of listings because I want a home, not just an investment opportunity. Units that are actually good, meaning good layout, nice space, good management, nice view, those are still selling and not losing money.

It will get even cheaper when the recession hits

Future slums. And that future looks closer than expected.

I looked at the bank of Canada inflation calculator and put in 846 in 2017 and it put that as inflation adjusted at $1041 in 2024. So inflation adjusted condo prices are back to below 2017 now. Ouch!

Why would a "2" bedroom condo that is 650 sq ft need 2 full bathrooms??

Greed is a bitch.

Ok. How many Uber drivers among those Condo flippers? 😂

Wait until the Chinese investors start dumping.

It's almost as if people who had no business getting into real estate investing, didn't know f all about economics (and what happens when governments spend like drunken idiots), and just assumed interest rates would be 2% or less forever....this makes me laugh....

Jordon you forgot to add all the cost associated with closing a pre-con 🤭 2022 I had to pay 66k just in closing cost Good luck to all the buyers and sellers out here stay strong 💪🏽

i wonder what the condo fees are for a million dollar studio. like who the eff is paying so much for so little.

Yeah... those parks are lovely....wonderful neighbours in the area.

Good! Flippers are speculators; that's a risky business be it gold or real estate. This flipper got precisely what they bargained on.

1900/psf is cray cray.

Finally precondo guy being honest telling it like it is no matter his interest

What software are you using to highlight those condos like that

What is the appx breakeven average per sq/ft for a precon?

Another aspect to predict will be if construction falls so much, how much will be the job losses in the region and these people will definitely have to move out. Construction sector is a big job provider. Prices go up when economy does well and goes down when economy is bad (i.e. no jobs). Another point people will not immigrate here if there are no jobs or cost of living is very high compared to what they make.

Will the mortgage defaults be offloaded by banks onto the taxpayer via CMHC? And isn't that a total fraud.

Hope the prices go back 20 years, back to normality.

Great video! We are definitely seeing the other side of speculation now, hope these stories help cool off future demand for pre con flipping. Also should account for opportunity cost of having deposit tied up in the condo. SP 500 is up 85% over the past 5 years.

you had me when you said $600k for a dog crate condo is a good deal 😂 high on these prices for so long you’re all detached from reality 😂

Depends if you are a buyer, seller, occupant, investor.

can you explain what blanket appraisals are and their significance? you kind of hint at them being a major stopgap to a serious problem but I don't understand what they are.

Thanks for great info! Question. You mentioned this assignment sale won't be recorded anywhere publically. Does this also mean CRA won't know about this transaction? If so, wondering how CRA will calculate the tax on gains if your friend is to sell this condo after closing.

I've had many clients whose appraisals did not come in on the pre-construction side

Good to hear. Buy a condo what do you have? An apartment with maintenance fees, insurance costs, heating, hydro, cable, taxes, etc. etc. And prices are only going down from here, and we've just seen the beginning of it.

These 600 650 don’t look too crazy compared to what we see here in Vancouver.

I thought the build cost for a Toronto condo was around $1400 a square foot? Joe we are down in the $800?

@Precondo, please take a look at Toronto C8 C1 resale and explain YTD numbers.

The thing is all these units dong come with a parking lot.

How many here, at your current earnings, would be able to buy a property if pricing reverted to levels 5 years ago?

I pulled out the BoC inflation calculator - $846 in 2017 is $1047 today. So, inflation adjusted, we are below 2017 prices.

Great content as per usual👌

Is Vancouver going through a similar thing? I don't see any Vancouver properties listed on your site

I think the population boom argument to support a longer term bullish view, is overstated. Per unit occupancy math needs to be re-done. It is well known that people are now cramming themselves into smaller and smaller places e.g. four people living in a bachelor unit. A stroll through any downtown condo reveals absolutely jammed elevators as both owner-occupiers and tenants take on more and more roommates. Property managers are simply looking the other way, as garbage overflows and building infrastructure buckles under the weight of far more occupants than the building was designed to house. This phenomenon will only get worse over time.

Hey I am looking to lose some money on a pre-construction condo. How would it be best to get in touch with you?

Where or HOW can we (the general public) find out the average price per sq. ft. for different neighbourhoods ❓❓❓Ref: the chart shown at 10:25 min?

I have lived in Toronto for almost 6 years and have purposely not bought a condo or any property. This is one of the reasons why. I already own property in Calgary and after years of the value taking a beating its completely shot up and now I am very much in the green. No regrets.

Good. Hate what they have done to this city. If there's no demand for that overpriced luxury bullshit, they will start making buildings that actually help the community have a place to live.

Price has to come down as much as 60% of its current prices unless there is hyper inflation like a situation, like it was in Argentina.

We don’t have a supply is we have an affordability issue

535 sq ft is a studio! And adding a second bathroom cuts the usable space even further.

Was the flipper your buddy Joe Blows?

Somebody tell me the difference between these condos and the projects.

Any contacts in Ottawa?

The 1k+ sq ft places aren't struggling to sell. It's the 400 sq ft shoeboxes that no one wants for over $3K per month in mortgage. Many OG buyers never intended to actually live in those floorplans or units - ever - and just saw them as an investment opportunity. That market is delusional and I hope things falls back down to 2016 prices, like $300K.

Canada is a 3 star hotel charging 5 star fees

1:20 never try to catch a falling knife. Prices have a long way down to go still! Two bedrooms 11x8 and 9 x6? Those are the size of closets...LOL! That condo isn't worth $200K in a proper market with interest rates at 12%.

Impossible I remember people saying housing never goes down. Could you imagine if housing didn't start to correct all the people would still be saying housing is a good deal. Lets just hope Foreign Investors don't have to sell if their local markets are declining and we don't put a stop to 25 years of mortgage fraud.

The basement accomadating 4 to 5 people. Gosh!! What a prison and cold windy weather.

This is alright. I’m looking for a wheelchair accessible place in downtown, so the fact that the overpriced units are coming down is good.

Hey, I'm brand new to your channel. Rented all my life but for the first time, I'm actually considering buying a place for myself. My current place's lease is up in Oct, so I'm looking to see my options for purchasing a place (or continue renting if the prices aren't good). I don't understand your video. With all the talk about rent prices skyrocketing, which I personally feel the pain of and have experienced, how can there be so many losses in the buying/selling market?

Would love to see you do some in Vancouver ❤

Investors have to sell before June 25rh to avoid 66% capital gains tax. Investors are leaving Canada for good.

DAMN! my cousin bought 2 in 2022 and they will finish building next year. they desperately trying to get out. I predicted they will lose 175k on each but now i'm thinking 200k each.

It’s like selling at the money puts at the time

Even with the cash to pay in full, $700k for a 600 sqft condo seems crazy. Compared to renting in a rent controlled building, my monthly costs would more than double, for something that is not really that much of a step up.

Thanks for the video, I appreciate the insights

If no one buys and buyer defaults, what happens next?

Realized long ago that builders charge insane amounts and people will pay, but when you resell nobody's willing to pay exorbitant prices

I paid $700k for a 325 sq ft unit at One Delisle. Why do I have multiple realtors eager to be my agent when I sell this on assignment all assuring I'll profit on this? Based on what I see, I don't think One Delisle will profit.

People need to first understand one very basic fact before investing in condos: condo apartments are NOT real estate. Buying a condo apartment is essentially equivalent to buying a car parked on the 30th floor. You own nothing but a depreciating asset plus the joy of paying for all the maintenance and repairs.

Why?

moss park is lovely? what's lovely about it, the needles or the bohemians fighting their imaginary tormentors?

All these condos should be below $800 / sq ft. The more pain the more consolidation are required. The spread between income vs. asset value gap is still to wide.

Too bad, so sad....it will happen in Calgary too...they are overbuilding....latest condo development turned to rentals...they couldn't sell them and they have been empty for weeks.....I live in a townhouse condo and the next door neighbour is an immigrant owner....he just recently kicked out some nice Canadian kids to raise their rent to a ridiculous rate, couldn't get his price, some Asians moved in and he had to let the condo go for less rent than the Canadian kids were paying........I hate investors.

I got answer to the housing problem taxthe speculators to hilt because this is canada u cannot live in tent or ditches by the road

I'd argue that Allan Park and Moss Park are more beautiful than High Park

That's right, hindsight will always be 20/20.

At least they have enough money to lose. My sister sold her house in Pickering a year or so ago and bought a brand new one in Port Hope.

just wanted to chime in on the current situation with Toronto condo flippers. I've been in the real estate game for 17 years, and if there's one thing I've learned, it's that cash flow is king. You might feel like you're losing $1,000 a month, but think of it as reinvesting. During COVID, I kept a close eye on the daily economic news and saw the interest rate hikes coming. I sold some properties at peak prices and reduced my mortgages on others. Now, all my properties are cash flow positive. I have a few closings coming up for units I bought back in 2017 for around $350-450K. I can flip them now or cover 90% of my TMI costs with the high rents. In a few years, the market will boom again. So, the key takeaway? Don't buy if you can't afford the potential "loss".. Real estate is a long game, and you need to be prepared for the ups and downs. Stay smart and keep investing wisely.

Maybe my math is off, but is that $1 million master bedroom 9x9ft?💀

WOW paying million dollars for a condo , kind of deserve to loose their money

These assignment sales are only a good deal if prices stabilizes and rebound which is not gonna happen.

It’s happening!!!

How does it make any sense that most of these 2/3 bedrooms don't have parking? Sure you live in the city, but not everyone wants to take transit (especially a family with 2 people working), and if you ever want to travel for vacation... you probably need a car.

I booked a pre con in Hamilton 802 sq ft for 868050 😢😢. It will be ready in 2028. Any hope?

I have absolutely no clue what’s foolishness are going through peoples minds to pay that much for a condo. An acreage or estate home, sure but not for a 700sq ft condo. Like seriously??

Great video. These are the small tides till the actual tsunami hits. Everyone says it is not going to be bad as a financial crisis. It is going to be worse. There are many catalysts waiting to burst. It is going fall like a house of cards.

I'm not sure why the positive side is current massive population growth- Ontario is expecting 100,000 less student visas issued in fall 2024 and TFW getting reduced to 5% of the general population will result in a net migration of approx 300,000 in 2025, a massive reduction as I'm sure you know.

I'm reading the comments and notice how everyone who wants to defend foreign investors always mentions how the number of foreign investors is low compared to domestic investors or buyers. Our housing market is like an auction. And if you've ever been to an auction, you would understand that it only takes 2 people, even in a room with 100, 200, 300 or more people to bid up the price to crazy levels.

Right now, the only reason to buy a condo is life style, not investment, deals are always there, but might be rare and hard to find at the moment...

bro pls suggest a condo ready to move in , my range is 500k max and i am a first time home buyer, working at kipling queensway

Not everyone is lover or fighter.. most people afraid to die or worse lost your limbs or eyes.

252 church is another pump and dump from centrecourt ! Horrible layouts / horrible prices / horrible finishes ! Centrecourt will have crazy closing costs And as for worst part, after 5 months of final closing in their projects this year, they are in hiding and not paying commissions to the agents who sold units … Be aware of this builder ! I would not suggest them and i sure wont work in their projects ever again

It’s crazy that people are losing money on 2018 purchases! Meanwhile, the S&P 500 is up 100% since 2018. Canadian dirt is a terrible investment, sorry you all got rekt 😂😂😂