Realtor Jordan Scrinko, of precondo.ca, a website portal for pre-construction projects in Canada, said several of his clients have expressed concerns about being able to afford their pre-construction investment, which many purchased when interest rates came in at under two per cent.In order to obtain a mortgage, all buyers must pass athat determines how much they can afford to borrow and pay each month if interest rates go up. The minimum qualifying rate is either the benchmark rate of 5.
“There were definitely some clients who came to us to liquidate their units before closing,” he said, adding that he and his team always advise buyers to do everything possible to hold on to their investment. Mamourian said it is OK for buyers who are closing soon to feel concerned about how they’ll be able to afford their pre-construction property.“A lot of people are very scared about interest rates, but they can still close. … There are so many options out there one way or the other to not lose a property,” he told“Most people should do what ever they can to complete the deal. My number one advice is to do what ever you can to hold on to a property. Your future self will thank you.
“We’ve seen worse times in the market. … In the grand scheme of things, the market as a whole will be okay.”Research from Urbanation has suggested that a record 32,000 new condominium units will be completed in the GTA in 2023. “There are some people who are in a lot of trouble and are going to lose money in this market now,” he said, adding in many cases those buyers put their faith in a “bad apple” agent who did and said whatever it took to make a deal.“We aren’t seeing scenarios where a huge chunk can’t close,” he noted, adding in a 500-unit condominium there may be 15 or 20 units that a developer takes back and sells again once the market improves.
Scrinko said buyers who purchased pre-construction condos to flip them in assignment sales – a practice in which a purchase agreement is effectively sold before a building is even completed - are now finding themselves barely breaking even or even losing money
Those realtors tell people not to panic, while selling their own holdings ahead of other people. Smart move.
Oh it’s definitely the time to panic.
If you’re leveraged up with variable rate debt in Canadian Real Estate, it’s definitely time to panic.
There is a financial panic going on by speculators who are on the brink of going bankrupt. Many of them realtors who are looking to sell to a fool. Speculators bought using variable rate and losing money every month since rent doesn't cover mortgage. Don't buy and watch them burn
Most of the realtors don’t know what is panic yet because they have never experienced panic market. We are in the denial stage right now. The fun will start soon enough. Can’t wait!
So realtors are also economists now
If I believe Realtors that's gonna be a problem lol
Panic comes after Denial and Fear. While this realtor is firmly in Denial stage, most are at Fear now. Panic will come later.
“…buyers who purchased pre-construction condos to flip them in assignment sales - are now finding themselves barely breaking even or even losing money.” Yaaaa I don’t feel sorry for the likes of YOU. ✋🏼😒
Easy for them to say that. If you have booked pre construction units and/or are a home owner with variable rate mortgage or fixed rate mortgage due for renewal in next couple years, I don't see why you should not panic and be able to sleep at night.
Housing shortage where? 'Research from Urbanation has suggested that a record 32,000 new condominium units will be completed in the GTA in 2023.'
Don’t worry. The worse thing is you end up homeless.
It is absolutely the time to panic. It's only going to get worse. People need to pay off debts and start planning. Stop listening to these 'experts' and banksters
Toronto_TODAY5 Who says I’m in panic
How come my local relators aren’t writing anymore? I miss our intimate oneway correspondence sometimes they take the time ti hand write in blue pen 🤨🥸
I always wonder why realtors lie to you. How do they knit the future of the market. No one knows. They are the 1 scammers who try to make you spend.
“Says realtor” lol
Sorry to say but that train left the station already. No sense panicking now, you're stuck with a very bad predicament.
The last person I trust in a recession ….builders Better have a solid contract
As long as condo developers can rip you off to pay $1800 per square foot, it's all good lol.
Alot of these people are flippers and I really couldn't care less about them being caught like this
The time to panic will be following the next two rate hikes--we are moving towards double digit interest rates.
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