Real-estate market 'almost at a crisis situation'

[fratri]

Lets take it one step closer to the centre of it all........as the same problem exist with the GTA younger residents too. They consider their home town Toronto, the place where they were born and raised, they too won't be able to afford to own a home in the city they grew up in.

So the big question for me is, who it buying up all these homes at these ridiculous prices? Where are the new buyers coming from?

[last5oh_302]

Most would be like this one, just nuts. Nothing special, in fact might need a little "upgrading" in the kitchen and certainly the basement being finished...........And you know it's going for more than "ask". Maybe 50 more, maybe 150 more...
https://www.realtor.ca/Residential/S...1S8-Port-Perry

Not many years ago, "Port Perry" was the gateway to cottage country. Now its just another bedroom community, in a city that has shot itself in the foot, where those before allowed greed, the Jonses, and more to take over.

The house in your link no longer exists..lol

[last5oh_302]

Lets take it one step closer to the centre of it all........as the same problem exist with the GTA younger residents too. They consider their home town Toronto, the place where they were born and raised, they too won't be able to afford to own a home in the city they grew up in.

So the big question for me is, who it buying up all these homes at these ridiculous prices? Where are the new buyers coming from?

Chinese.

Buddy bought his place in Oakville a few years back for in the 450 range and theyre all selling for 1.2 mill (starting at) and it's all Chinese folks moving in.

[JBen]

I'm not sure anyone knows for sure. Certainly some of it is speculative and foreign investment. Some of it is investors buying places to turn into rentals. But from a few reports I've read, the bulk is still first time buyers. So young people starting out, that either grew up in the GTA, or have moved here/there in search of work and the dream.

Read something not long ago, that showed in the last 5 years, the population of the GTA has grown by 600,000 or 10%.

Have heard that Brooklin, a few minutes north of Whitby which was once a quaint town (if that)just some years ago, is project to double in size (30k current to 60k) in the next 4-5 years.

[JBen]

Lmao Rick. Guess I shouldn't be surprised. Today is reset day and the vast majority of what was available last weekend, sold Monday, with athe rest going Tue.

[Bonkers]

I was told today that this is just a "millennial" issue and that were just to entitled. Well the days that we were brought up to believe are going to be there, are now gone for us. Working hard and getting a good education seem to mean nothing. Stagnate wages, poor housing market, high debt has hindered an entire generation.

[JBen]

Every generation, to one degree or another blames the previous for some things. This is one, where I agree. and for the most part the reasons/causes are fairly apparent. "Me"

For the younger people, leaving schools with a lot of debt, a pedigree that says your capable of driving a cab, because in time, even cab drivers if they aren't already will need to be certified, and that's assuming there's jobs in that field when you come out...

"karma" is a B. When your 35-40 and still in your parents house, maybe the basement with your spouse and child. You can remind your parents you'd didn't make the mess......
/half smiles.

[glen]

"I was told today that this is just a "millennial" issue and that were just to entitled. Well the days that we were brought up to believe are going to be there, are now gone for us. Working hard and getting a good education seem to mean nothing. Stagnate wages, poor housing market, high debt has hindered an entire generation."

Who is making money from your suffering?

[JBen]

Was talking to someone last night.
That persons parents have taken out a reverse mortgage on their home, hopefully to see them through retirement. They are/were concerned about it, mainly because they don;t know anything about them. So I explained how they work, and tried to put them at ease. Like the majority they (that persons parents) don't have guaranteed for life pensions. The trend of reverse mortgages is very popular in the EU, and they are gaining in popularity here.

reality
For seniors on fixed incomes they need a place to live. So because land taxes, Hydro and more are exploding, the immediate thought is. Yes, they can as many think sell their homes, downsize and bank a lot of money. It's not that simple. Once you get to be 65-70, things like being able to walk to a store, walk to a coffee shop to meet a friend and far more become very important. In time, for many driving becomes an issue..............

Many seniors in the burbs are already in "trouble". Because unlike the city proper, walking to a grocery store.......meeting friends, or seeing their GP........Yeah their homes today might be going for stupid prices...great, they've sold their house, where their children grew up, and more. Where do they go to live? Not everyone enjoys being isolated, not everyone can handle cabin fever in winter, not everyone is ok with the possibility with having a heart attack and help not arriving in time..........

So many are turning to reverse mortgages.
They can stay where they are until the money runs out and the bank owns the house. In Europe they also have a mechanism where you sign over ownership, but the "lender" will carry the house for however many years be it 10 or 30. But when you die, they own it. So even if the money hasn't run out............but it's possible you could outlive the money to...either way, they take possession as soon as you pass.

"who is getting rich from all the above"
Not sure "rich" is right but you can look towards the GTA and figure it out. You might be surprised. Think Baby Boomers.

[werner.reiche]

Good points in the above post JBen.

The one HUUUUUGE thing wrong with the direction Ontario has been heading since the McGuinty days is the HUUUUUGE cost increases in basic unavoidable items like heat, hydro and taxes. It is making Ontario (even rural areas) a very expensive place to live. That lack of affordability is causing much hardship for many people (retirees without government pensions, students, under employed, etc).