Investing in Toronto

[pani]

Hello every body,
I am new here and found this site from Don R. Campbell, thank you Don.
My question is how do you see the near future market of Toronto?
Do you think it is bubble?

 

[Thomas Beyer]

Why would there be a bubble ? People are leaving ? Interest rates will go up ? Stock market crash imminent ? Jobs are disappearing ?

What asset type ?

Where in Toronto ?

 

[RE123RE]

Hi,
I see a bright future.
A more complete answer is a 3 dimensional bell curve for Toronto where x is value appreciation, y is its probability and z is time.
I can only tell the time.
Thanks

 

[pani]

Hi,
I do not have that much money for single house in Toronto, I want to buy attached home.
All the elements that Tomas mentioned is the same as Montreal (People are leaving ? Interest rates will go up ? Stock market crash imminent ? Jobs are disappearing ?) but why it not increased in Montreal?
How do you see Montreal?
Thanks,

 

[RE123RE]

but why it not increased in Montreal?
How do you see Montreal?

Hi,
The main reasons are tenants culture and population growth being significantly different in Montreal compared to Toronto:
http://www.newgeography.com/files/cox-toronto-evolve-1.png
Thanks

 

[Thomas Beyer]

Montreal's prices are rising too, now that the Quebec government is not so totally socialist anymore, and actually embracing debt and spending controls. Plus our good looking selfie loving bi-lingual PM is from Montreal. It's future is bright, too: http://www.huffingtonpost.ca/2015/1...ties-remain-a-relative-bargain_n_8747046.html

 

[pani]

Hi Thomas, just wanted to say I'm really enjoying your responses, thank you

 

[DanW]

I can't tell you if there is a bubble in Toronto or not, but I don't invest there. The amount of down payment money just to get into 1 property is quite a problem for a small investor. Then you need to add some value with more cash (turning a single family home into a duplex) in order to make some cash flow. If you are looking for appreciation then it might work, but I am not betting my money on it. I like large cash flow and don't care about appreciation. This has worked because I bought the right properties and the appreciation came because I bought at the right price.
If and when there is a crash I will buy as many downtown Toronto condos as I can, but for now I just keep doing what I do and keep the cash flow coming in.

 

[Thomas Beyer]

Cash is King - Cash-Flow is Queen ! (TM)

 

[injoy]

Hi Thomas. We thoroughly enjoy your insights and responses to various posts thanks. Congratulations btw to you and your family regarding the graduation of your children from Med school. We agree that cash is king but where do you recommend "parking" this cash to get a high percent return than what you can get at the banks in the meantime while keeping on looking for good RE opportunities?

 

[Thomas Beyer]

I pay down LOCs, or I buy REITs, covered calls (deep in the money) or spreads (say TSLA or APPL or ORCL or IBM or MSFT) with cash. There is volatility and it may not always pay. Depends on how "safe" this money has to be, i.e. if a 5% loss is OK if you can get a 10-15% ROI ! We also lend money out but that is usually at least 6 to 18 months.