Speculation in Real Estate

Rookie Real Estate Investors Nightmare

Investing in Real Estate can be very lucrative provided you are well informed being. Instead people intend to follow the rat race. When market is going up, everyone likes to jump in not knowing where they are going. Ignoring the basics and fundamentals can lead you to lose it all propositions. Quick bucks in Real estate have created more bankruptcies than millionaires. Whenever there is a boom in Real Estate it is due to high demand and very low supply. When supply catches up to it or supply can be surplus the boom turns into bust. There is no exact science to figure out the boom and bust cycle.

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Phantom Offers in Real Estate

Dirty tricks of crooked Realtors

Most of you may never hear about this terminology but if you are Real Estate Investor, who is buying Real Estate from decade you might have been a victim of Phantom offer. Phantom offers exist virtually in the head of Listing Real estate Agent. The practice is very old and dirty trick of the trade. There are few bad apples who intend to give the whole industry bad name. This type of practice get rarely challenged.

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Principal Residence in Canada

A very common question asked by Canadian Real Estate investors about their principal residence. How their property does qualifies as principal residence and what is Canada Revenue Agency’s parameter.

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 Toronto: the hottest Condomania market in Canada

Forbes magazine ranked Canadas the best place on the planet to do business. The U.S.came in 10th. As the economic hub of the country, responsible for fully 20 per cent of its GDP,Toronto benefits greatly from such global attention.

 “Canada is seen as a safe haven for foreign investment, especially for middle eastern and Asians,” said Navtaj Chandhoke, founder of World Wealth Builders, a Canadian Real Estate investors training  centre. “The appreciation and rental demand also got the attention of Canadian & international Real Estate investors.”

“The average home price in Canada has increased by 160% since 1990, mortgage interest rates have decreased by 60%. As a result, over the past decade, the average mortgage payment has increased by approximately 25%,“ said Navtaj Chandhoke.

The attraction for investors is simple math: with a market that in recent years has appreciated 8 to 9 percent annually, even the smallest units are an attractive investment. Bought “pre-construction,” condos are worth considerably more by the time they’re built. It’s estimated that fully 60 percent of the units sold in the Toronto market are snapped up by international investors, many from China and South Asia.

There were132 high-rises under construction in Toronto in September 2011 with another 120 projects in phases of “preconstruction”. That is far more than the next most-active centers, Mexico City with 88 on the way and New York City with 86.

The city is also a major immigration destination. An estimated 100,000 new residents move into the greater Toronto area each year. The growth rate is closer to that of cities in Asia than any in North America. Immigration rules favor migrants with assets. This means that many jump quickly into a housing market that, despite rising prices, is still a bargain by international standards. 

Bank of Canada Governor Mark Carney warned earlier this year that too much inventory could lead to “the possibility of an overshoot in the condo market" in Toronto. Canadian Real Estate analysts have been predicting for years the end of the Toronto boom, and so far they’ve been wrong.