Fredi Magazine Spring 2016 / Volume 2 Issue 1 - Page 62

» 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 or call 416.417.4117 | 416.505.8376 62 • fredi spring 2016 HOUSE&HOME //