Condo mania hits as 1 Bloor St. goes on sale. people lined up for a week in the freezing cold while the builder upped their price range from $300K-$2M to $500K-$8M. people are so crazy.
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this post was added on tuesday november 13th 2007 around 3pm. it was added to the link category and was tagged: canada, housing, money, toronto
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Isn’t it ridiculous that a significant number (if not the majority) of those waiting in line were real estate agents looking to buy inventory for re-sale. Front-running at its best. Illegal in the stock market - legal in real estate.
when you consider that people in toronto can make significant profits turning around a choice condo in a 12-18 month timespan, these people suddenly don’t seem so crazy. that being said, i don’t really know enough about this project to say if it qualifies as a ‘choice’ building.
who’s crazier — someone camping out for the debut of the iphone, or someone camping out for the opportunity to make some cash?
the toronto condo market’s been good to me…
It’s crazy because its built on speculative valuations. The lease rates (cap-rates) don’t support these high prices, nor do construction costs. Most of those lining up are investors with no intention of living in the subject property.
In 12-18 months, are they guaranteed re-sale value? Historically, and by historically I mean the last 5 years, you may say, yes. But what’s going on right now mirrors the last real estate crash in 88-91.
I can’t wait for it to go bust….That’s when my money is going in.
How much higher can a $300K 1-bed room really climb? I guess that’s the real question. The location is pretty sweet though, right at the intersection of the Yonge and Bloor subway lines. You can walk to Yorkville, and down Yonge if you are in the mood for somethign scummier. (Though Yonge is much nicer than it was when I was in high school — much less porno.)