» location, location, location
Q A
QUESTION
WITH
CONCETTA
+ LOUIE
SOLD
LESS THAN
A WEEK
FOR OVER
ASKING WITH
MULTIPLE
BIDS.
The market is so hot,
do I cash out and
wait for the crash?
ANSWER
So you recently got a knock
at your front door from
a real-estate agent who
says he has a foreign buyer
ready to pay you top dollar
– should you sell? Well the
truth is, a primary residence,
while a key part of an overall
investment portfolio, is
still first and foremost the
place you live. You need to
ask yourself, has the home
served its purpose? Can
you and your family find a
2-STOREY
SEMI-DETACHED
Finished Basement
WESTON ROAD & MAJOR
+ 3 Bathrooms
MACKENZIE DRIVE
1500-2000 sq. ft.
+ 3 Bedrooms
suitable replacement for
your lifestyle in another
market, whether temporarily
or permanently? One word
of caution, cashing out on
the prospect of an imminent
market crash is always risky.
It simply may not happen in
the window you expect – or
» As the market continues to gather steam on a daily basis, people are eager to find
answers as to how and why this growth continues to show no signs of slowing. Just like the
stocks we trade, naturally, everyone wants to know when to get in and when to get out. On
the quest to find this golden answer, one idea that has taken centre stage of late is foreign
ownership. The notion of course is, foreign investors are flooding our market buying up
much of our inventory and thus bloating real-estate prices right across the board. The
Canada Mortgage and Housing Corporation recently released it’s 2015 HMI report on
oreign wnership and while these results confirm there is a growth in foreign ownership,
they also help to put things in perspective. The report states, “In the Toronto CMA, the
share of foreign ownership is less than 2% for buildings completed before 1990 and 7% for
newer constructions completed since
. This effect is even more pronounced in Toronto
Centre where about 10% of the newer stock is owned by foreigners.” Over and above this,
confirms that there is no existing tool which can provide a definitive measure of
the level of foreign investment in Canada’s housing markets. So clearly, foreign investors
are part of the story – but they are far from the whole story. The truth is, there is no one
golden factor upon which the market hinges – and this is likely a good thing. While this
makes it harder to predict fluctuations in the market, it also reduces the overall vulnerability
of our primary investment which is ultimately, a very good thing to most.
may never happen, which
means, buying back in, may
never again be a possibility. Investment properties
on the other hand, are all
about playing with the risk
inherent in searching for the
best time to buy and sell.
It is always best to talk to a
professional to find the right
investment for you before
making moves within today’s
powerful market!
Concetta and Louie are top producing realtors with Homelife/Metropark. They provide buying and
selling opportunities for their clients in many high demand neighbourhoods as well as new home and
condo preconstruction sales. They are ranked amongst the TOP 5% of Homelife Realtors across
Canada(2015). For all your real estate needs you can reach them at [email protected]
or call 416.417.4117 | 416.505.8376
62
• fredi spring 2016
HOUSE&HOME //