To tame Toronto’s housing ‘bubble’, ban foreign buying
Diane Francis Apr 13, 2012 – 2:26 PM ET
While I don't want to present myself as xenophobic, I thought Diane Francis' article published in The Financial Post yesterday offered a solution to regulating Toronto's condo boom before it bursts its bubble. Her suggestion? Ban foreign buying.
Click HERE to read Diane's column.
There's no question that dozens of condominium point towers throughout the City of Toronto have been specifically marketed overseas as investment opportunities. As a result, there are tens of thousands of new units under construction which will be registered over the next few years. This portends an oversupply, in particular smaller one bedroom and one bedroom and den units, which potentially may not be absorbed in a timely manner by the rental market. Click HERE to read my Fall 2011 Real Estate Forecast which explores my predictions.
Are you at risk?
The moment the economy turns bleak and more investors need to liquidate we could experience a massive fallout in the condo market. If there are going to be any cracks in the veneer of our robust market, they're going to show up first in the condominium high rise 'point tower' market. Note, I'm writing about a specific type of condominium, namely those ubiquitous impersonal glass and plastic encased 'boxes in the sky' situated on windy freshly paved placeless streets where the only retail serving residents are 24hour convenience stores, dry cleaners and banks. There are acres of this new build of dubious quality covering former industrial land across the city which offer none of the character Toronto truly has to offer the pro-urbanite. Most locals know this, but be wary if this is the kind of property you own. For those who are living in a 'special' condominium which leans to architecturally unique, is of a good size, boasts a garden or terrace, has a panoramic view, is in a 'neighbourhood setting', or includes more than one parking space, you're more likely to retain your value.
Don't forget. There's always a market for Unique.
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