# Tired Of Overbuild Condo Talk



## dogcom (May 23, 2009)

I am getting sick and tired of hearing the Bank Of Canada and many others talk about the danger of overbuilding condos in Vancouver and Toronto. They talk about the speculation and the overbuilding constantly but don't stop it from continuing. They should stop the mayor in Richmond where I live or probably the mayor in Toronto from lining their pockets or whatever they get out of it and slow down approvals to the point where people have to have a good down payment or can assure everyone that they can pay for their condos. Also maybe when buying you should have to take on the property after it is built before you can sell it.


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## Sherlock (Apr 18, 2010)

I don't see why the government should step in and stop anything? Who does the overbuilding really hurt? Just those foolish enough to get in over their heads by buying condos with 5% down on a 45k income, or investing in condos with negative cash flow and banking on appreciation. It will be an expensive lesson for them but that's what they get for being greedy.


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## dogcom (May 23, 2009)

It can hurt all of us when we overbuild and people borrow to much and then bring the entire real estate market down on everyone not just the idiot speculators. As an extreme example look what happened in the US and what it has done to the whole world. 

A lot of people just want a place to live and yes the market should decide what they pay but there is a need for rules as to how far the market can go, without rules chaos ensues and that is why we have laws and why we have governments.


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## Chris L (Nov 16, 2011)

Overbuilding helps keep the cost of housing down which is good for people.


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## dogcom (May 23, 2009)

Chris L I agree but it shouldn't happen because people put nothing down or can't afford to pay the day they sign up. Dianne Francis also doesn't seem to like the condo situation .http://www.huffingtonpost.ca/diane-francis/toronto-condo-boom_b_1438892.html


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## Chris L (Nov 16, 2011)

dogcom said:


> Chris L I agree but it shouldn't happen because people put nothing down or can't afford to pay the day they sign up. Dianne Francis also doesn't seem to like the condo situation .http://www.huffingtonpost.ca/diane-francis/toronto-condo-boom_b_1438892.html


The foreign buyer is the margin, not the majority. We're all playing a role in inflating the RE bubble....every person who owns a home, talks about a home as a good investment, and on and on.

I don't think the government needs to step in to fix this problem. It's just a problem that we can each protect ourselves from. I did by selling my rental after 10 years of ownership. Someone else might choose to sell and rent. Another might just keep their house to live in for the next 10 years. Yeah we'll all go through some pain but we've all had a role in this too. It's not just Chinese buyers.


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## dogcom (May 23, 2009)

I don't agree because of the conditions I had to meet to buy my house in 1991. Back then you couldn't go over 25 years you couldn't exceed 35 percent of your gross income and you had to have 25 percent down. These conditions should have never changed in the first place, but since they have you have to step it back over time to bring it back in line.


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## financialnoob (Feb 26, 2011)

In all fairness, the government did modify and tighten mortgage rules twice within a 12-month period over the last few years. And when the Big 5 started offering rates below 3% for 5-year fixed mortgages, there were some "discussions" which had the banks suddenly moving the rates back up within a few weeks. I don't think they've done enough, but I think it's unfair to suggest all they've done is just talk.

Increasing the amount required for downpayment would help, as would changes to CMHC to not insure ridiculous mortgages that are 6 times a person's income. If a bank had to take that risk on itself, they would surely change their own internal conditions.


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## Fain (Oct 11, 2009)

dogcom said:


> I am getting sick and tired of hearing the Bank Of Canada and many others talk about the danger of overbuilding condos in Vancouver and Toronto. They talk about the speculation and the overbuilding constantly but don't stop it from continuing. They should stop the mayor in Richmond where I live or probably the mayor in Toronto from lining their pockets or whatever they get out of it and slow down approvals to the point where people have to have a good down payment or can assure everyone that they can pay for their condos. Also maybe when buying you should have to take on the property after it is built before you can sell it.


I prefer a free-market. I won't want no communist controls and what i can and can't buy. Keep your hands off!


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## Fain (Oct 11, 2009)

financialnoob;134491
Increasing the amount required for downpayment would help said:


> $100,000 annual income can't afford a $600,000 house? why we would we do that? just let people do their own thing and concern yuorself with your own mortage/


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## sharbit (Apr 26, 2012)

A proactive politician... i don’t know. that’s a tall order.


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## kcowan (Jul 1, 2010)

Fain said:


> I prefer a free-market. I won't want no communist controls and what i can and can't buy. Keep your hands off!


Where do you find a market like that? In Canada, government is involved in all aspects of the building cycle.


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## HaroldCrump (Jun 10, 2009)

Ha ha, a "free" market in housing and RE :rolleyes2:
That does not exist in any country on the planet today, and is arguable whether it ever has.

Those that ask for a non regulated, non govt. controlled market, do they realize that they will be paying 18% for a 3 year mortgage with 40% downpayment in the absence of govt. intervention?


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## dogcom (May 23, 2009)

Fain is there a free market in anything and is that even possible. If government isn't involved in anything let it be Re, stock market or whatever then someone is going to step in and that can be criminals or whoever. 

Can the free market control airlines without any rules. Would you fly knowing the company can cut corners on maintenance without rules and regulations. No, the government or someone needs to set the rules and boundaries and then let the free market decide.


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## HaroldCrump (Jun 10, 2009)

We can't even agree amongst ourselves on a free market for chicken, let alone airlines and real estate.


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## Cal (Jun 17, 2009)

And we sure can't believe all of the rose colored press releases from CREA!


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## marina628 (Dec 14, 2010)

Fain With Heating costs and property taxes a person earning $100,000 gross probably cant afford $600,000 house.Property taxes would probably be $5000+ and that is very conservative....


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