The Truth About Toronto Real Estate: I Wish I Knew This!

💾 DOWNLOAD Our FREE Guides

Video Chapters

00:00 📈 Toronto Real Estate Market Growth
02:04 💡 Canadians' Obsession with Real Estate
03:12 📊 Importance of Micro Markets
04:06 🔮 Predicting the Real Estate Market
05:03 🏡 Wealth Gap Between Homeowners and Non-Homeowners
07:09 🛠️ Effectiveness of the Stress Test
08:19 🤔 Evolving Consumer Knowledge in Real Estate
09:30 🚧 Government Policies and Market Affordability
10:40 🏙️ Condos as Toronto's Future
12:03 💲 Real Estate Leverage and Market Dynamics

The opinions expressed herein are solely that of Tom Storey, not Royal LePage or the TRREB and should not be misconstrued as advice or the basis of an agency relationship whatsoever. Please consult your professional advisor prior to taking action on any decisions relating to the matters discussed in these videos. This communication is not intended to cause or induce breach of an existing agency agreement. This is not financial advice.

[mikei]

"A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain."
-Mark Twain

[adamspencer]

It is definitely better to own a home in most cases unless you plan on moving in the next five years. Even capital appreciation aside, a mortgage is like shorting the dollar, you borrow today in a agreement to pay back at a future date, just by inflation doing its thing you almost always come out ahead. Add in that its a forced savings vehicle and you will eventually pay the mortgage off and you will usually win, provided you don't buy someone else's problem.

[miralev]

Great video. Thank you. I'll keep it brief: I'm 46. Entered the real estate business in 2008 during the slowdown. I started with pre construction properties—some I flipped, and some I kept. Fast forward to today: I own 11 mortgage-free condos in Toronto, generating a gross monthly income of $27, 000. Passive income. I still firmly believe in real estate. The secret to success isn’t just about the current property prices—it’s about cash flow. If you can manage your cash flow effectively, it’s always a good time to invest.

[kellyhou]

My parents bought a condo in 1990 near finch and Yonge. They paid $275k for 1000/sf, 2+1 den. They sold in after 3 years for $150k because we moved into a house.

That same condo would worth $550k today in 2024. The house they bought to live in also x 3.5 times. It is not to make money but just so we have a place to live.

[DummMoney-rrfi]

I'd like to congratulate Steve K on 17k subs. You have some work to do!!

[RHH-zcdu]

Yes, I learned never buy real estate in canada again. The most curraption country in G7.

[datruth]

Homeownership is only so important now to Canadians because it is no longer taken for granted.

It used to be like going to the washroom... nobody's talking about it!

[Easyservice-xq]

You make very beautiful videos, I like them very much, I will pay attention to all your videos

[tacosdecamaron]

Thank you Tom, great insights as always!

[dangottlieb]

Excellent informative video.
One point was missed, however. There is no question that real estate in Canada wins in the long term, but not because of supply/demand, immigration, or interest rates. When purchased as a personal residence It is the only investment one can make outside a registered account (TFSA, RRSP--both of which have limits) that does not attract any capital gains taxes. Therefore, buy the biggest property you can afford, hold it for decades, and when you sell you have a sizeable nest egg to do whatever you want with and the government takes nothing. I believe this is why the very wealthy purchase absurdly large mansions: they profit immensely down the road.

[glenf]

Homes or investment portfolios increase in value = 'the wealth effect'. You must have seen this situation daily where clients lulled by low interest rates moved to a bigger home, took out cash, reset their AM back to 25 or 30 years and then interest rates jumped 475 bps.

[alextsanis]

What are your thoughts on condo townhomes (3+ bedroom, room to raise a family with two kids)? Should these be treated separately from condos in terms of future market outlook?

[howy]

8. It looks like the government is going to remove adjustment costs on rental builds. So many more rentals should be coming...Agree with all. Especially #10...

[benitodelbenito]

I get Freehold. I don't think Condos will be a good investment going forward. My guess is Condo prices crash corporations buy up buildings and start running buildings like purpose built rentals. It makes much more sense for a building to be run by one massive landlord vs a bunch of mom and pop landlords. Condo investors only really made sense when the places were cashflow positive.

Do you think Condos are still a good bottom rung of the housing ladder? Or Would you advise first time homebuyers to get into any and all "dirt" that they can.

[janicecraig]

Great content Tom? Can you and Steve talk about detached listings December to January during the lull.

[khurramcanada]

Thanks for such making such informative videos.
Can yoou please gues or predict, based on your long experiene how much appreciation is expected per year (in %) in the next ten years in GTA?

[DummMoney-rrfi]

How come Steve's videos are better? Did you teach him too much, or is he just better? I have to admit you are a tough act to beat tho

[cindywilson]

I can't understand why it is okay for parents to gift the kids money for a down payment for a property they obviously can't afford, the bank said NO! What makes you think gifting them money is helping them out?

[দুর্জয়দুর্নিবার]

Yo, how is real estate as a part time career?