Are you betting against a housing slow down? Should you?
Are you risk averse? or are you that betting man!
This Toronto Market has people firmly planted in both camps…but as a professional Realtor, I must caution you against “flippant” behavior when it comes to Real Estate holdings. And yes, there is a LOT OF FLIPPING going on right now. Many investors are “rushing to market” with hastily slapped together renovations/flips in order to lure those hungry buyers who suffer from FOMO (fear of missing out)!
In this very intriguing article, “Benjamin Tal, the deputy chief economist with CIBC World Markets, said the trend of people keeping their principal residence for investment after buying a new home is growing. “We’ve seen it through talking to people, but it’s not huge,” he said. “It’s still a very small portion. But in the low-rise market the potential for speculating or flipping is high. When prices rise, people take risks.”
One could take the tact to “double your money, double your fun”, but one of the unintended consequences of buying a new home and keeping your matrimonial home to rent out, could be “double trouble”!…especially if there IS a slow down in the market.
The Ontario government has not decided whether or not to impose the 15% tax on foreign purchases, as Vancouver has done….but if that does happen, that might put some of those “betting men” in trouble.
My advise would be to read this article, and then contact me so that I can help interpret the numbers and what they could mean for your specific real estate decisions.
Better safe than sorry I always say! Yes, I’m a CALCULATED risk taker…throwing the dice, knowing the odds are (overwhelmingly) on my side! And you? Are you a “betting man”?
If you (or someone you know), are looking for a Realtor who cares MORE about focusing on you, your concerns, goals and the successful purchase or sale of YOUR unique home, than they care about their volume of transactions and awards, please let me know the best way for me to connect, as I would love to offer my highly personal service. Contrary to that old expression, not only IS this business, but it IS personal! And, please, I encourage you to ask me any questions you may have about this post. I value your input and appreciate the time you took to read it.