Can not understand who is buying condos in Toronto?

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BUCHA

NewBee

Can not understand who is buying condos in Toronto?

Who is buying little-box-studios at 250K?

What is the sense of buying these condos if you are going to pay monthly more than $300 as condo fees + mortgage rate? It would be almost the same you would pay for rent, right?

P.S. I live in Montreal and pay $620 each month for a studio in downtown.

Canada / General Chit-Chat

MARIUS STAICU

NewBee

Bucha, the difference is that in Downtown Toronto the rent for a studio is at least $1200

ROY BHANDARI

BabbleBee

467

I'm not entirely sure what your question is here: a) what is the demographic of people buying small units and b) why would they buy ?
a) There is a huge demographic of people buying smaller, cheaper units. Think of the people in their first year at a new job in the city - maybe they just got out of school and can't afford anything more. People who work in the city during the week but "live" out of town and use the room as a hotel room. People who don't make big money but need to live downtown.
There is a HUGE market for this so I'm not sure what you mean by "who is buying units at $250k" -- the answer is simply - the same people who buy small town homes for $250k outside of the city.
b) Carrying costs for buying a new unit today is similar to a monthly rental payment. However, people like to OWN real estate. It's a tangible, appreciating asset. People would rather pay their own mortgage than a landlords and have something to sell when it's time to move up the property ladder.
I'd love to answer more but your questions are far too vague ....

BUCHA

NewBee

Roy said:

b) Carrying costs for buying a new unit today is similar to a monthly rental payment. However, people like to OWN real estate. It's a tangible, appreciating asset. People would rather pay their own mortgage than a landlords and have something to sell when it's time to move up the property ladder.

Thank you for detailed answer but again it is not clear what is the motivation of people buying condos with monthly fee burden equal to 50%-80% of rental payment. Suppose, buyers paid out mortgage fee but they continue to pay for their "tangible, appreciating assets". I would not call it "ownership" , rather "membership in a club".

SNEAKERGIRL

NewBee

Roy said:
I'm not entirely sure what your question is here: a) what is the demographic of people buying small units and b) why would they buy ?
a) There is a huge demographic of people buying smaller, cheaper units. Think of the people in their first year at a new job in the city - maybe they just got out of school and can't afford anything more. People who work in the city during the week but "live" out of town and use the room as a hotel room. People who don't make big money but need to live downtown.
There is a HUGE market for this so I'm not sure what you mean by "who is buying units at $250k" -- the answer is simply - the same people who buy small town homes for $250k outside of the city.
b) Carrying costs for buying a new unit today is similar to a monthly rental payment. However, people like to OWN real estate. It's a tangible, appreciating asset. People would rather pay their own mortgage than a landlords and have something to sell when it's time to move up the property ladder.
I'd love to answer more but your questions are far too vague ....

LOL Just out of school... got their first job...and buying and $250K Condo????? Who the heck has a down payment for that just out of school??? Who's buying the Condos??? China...that's who's buying the condos.

ANGELO Z

NewBee

Yes,a lot of people from over seas are buying..However,you still have people from far away suburbs comming back and buying near,or right in the city..The gta is a hot market for condos still...