Is Canada Propping up Condo Investors to Prevent Prices From Falling?

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In 2020 Move Smartly host John Pasalis raised an important concern about Toronto’s pre-construction condominium market – that investors were paying a very high price when compared to what existing units were selling for. What would happen if those units were not worth what the investors paid for them when they were done?

Many of those units are now completed, and in many cases, they are not worth what investors paid. But why are we not hearing about distressed investors who can’t get a mortgage because they overpaid for their condos?

In today’s episode, John asks if our government and big banks are propping up these condo investors to prevent condo prices from falling.

Today's Show Links
John's 2020 Blog Post - Why Investing in Pre-Construction Condos Could Cost You Money
https://www.movesmartly.com/articles/...

0:00 Introduction
4:40 55 Mercer sale prices + cashflow
7:19 Did values drop?
8:12 What happens if you overpay for a condo?
10:33: Changing the rules + 100% LTV
20:02 What were investors thinking?
24:02 Why today's market is different
27:28 What happens next?
34:55 Q&A with Urmi Desai
36:00 Pre-con vs resale condos
42:42 Can Toronto have a short-term oversupply?
46:29 Pre-con investors + mortgage approvals
49:02 Can banks help investors indefinitely?
52:55 Could see existing condo prices fall?
55:14 Vulnerabilities due to an investor-driven market
1:01:01 Mom & Pop investors vs big corporations

Contact Us
John Pasalis, President and Broker, Realosophy Realty, Toronto | Email: [email protected] | Twitter: @JohnPasalis

Urmi Desai, Editor, Move Smartly | Email: [email protected] | X-Twitter: @MoveSmartly

#torontohousing #torontorealestate #torontorealestatemarket