QUOTE (RCC @ Mar 12 2010, 05:55 PM) Its vdery helpful to hear all the different opinions.
Thomas, thanks for the detailed insightful analysis. From Thomas`s analysis, it looks like it is a viable option if prices remain flat or increase. I see the biggets risk is if prices decrease.
With the frenzy in the Toronto condo market, where are prices going?
Is it overpriced ? Wish I had a crystal ball.
of course prices CAN drop .. and have in many markets from 2007 to 2009 .. so look at land cost and cost to build ... @ $300 or even $400/foot in down town Toronto that is tough to beat ..
Look rather at: where do people move to .. or where is the population growing ? That is where prices RISE ! A pretty good crystal ball proxy !
i.e.: certain areas of GTA, SW Ontario, most cities in W-Canada, some cities in Europe, many Asian cities, many African cities, many South- and yes, North-American/US cities ! Cities with: beaches, mountains/lifestyle, year-round jobs, decent quality of life, decent paying jobs, opportunities ..
So real estate usually makes sense in these parts of the world .. but may not in some others close by !