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History always repeats itself! Pre-con condo investors walked away from their purchases and lost millions in Dubai, Miami, Las Vegas and now Vancouver because their units when completed were not worth what they paid for them 1/ cbc.ca/news/canada/br…
But the thinking among GTA condo investors is "it can't happen here" & "this time is different" & "there is not enough supply"
It can happen here, this time is not different and even with tight supply, end-user buyers will not pay any price to own real estate. 2/
It can happen here, this time is not different and even with tight supply, end-user buyers will not pay any price to own real estate. 2/
We saw this when detached home prices in York Reg fell 20-30% over the past 2 years. A type of home that is more supply constrained than micro condos. Investors paying 30-40% above resale prices to buy a pre-con condo will likely face the same fate as so many other investors 3/
They, just like Vancouver investors today, are not going to be able to close on their units because they will not be worth what they paid for them.
They, like Vancouver investors, will try to find legal grounds to back out of their deals 4/
They, like Vancouver investors, will try to find legal grounds to back out of their deals 4/
They will beg the government for help and will play the role of the innocent victim who thought they were making a "safe and secure" investment for their children's future. But in the end, they'll lose a lot of money, maybe even their homes. 5/
Then, all will be forgotten in a few years when the next round of get rich quick real estate speculators decide to jump into the market. This cycle will go on forever because people's greed and desire to make easy money will never end /
