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Gentrification is happenning in Toronto outside of the downtown core, albeit very slowly. The main effect is you have families cashing out and moving further a

by anifow 12y ago

Gentrification is happenning in Toronto outside of the downtown core, albeit very slowly. The main effect is you have families cashing out and moving further and further away from the city to put the real estate price differentials to good use (bigger house, or cash in bank). In the current environment, it actually makes zero sense to buy residential property for the sake of renting it out, so the only ones who are long time owners. Over time, they too will cash out and it will be harder to find rentals until the neighbourhood either increases in status to command higher rates (like what happened in Kensington Market or in the Bellwood neighbourhood), or the property prices start falling to a low enough level that it makes sense to buy rental property again.

jaman12 12y ago
hrm, this is not happening very slowly and has been going on for quite some time. It stretches all the way up into North York and is happening all through the GTA. Due to the free flow of capital and the visas that Canada was handing out to immigrants with significantly large amounts of capital you could come to Canada with millions and buy up a few properties to then rent them out. It makes sense to move your capital away from a highly unstable middle eastern/Asian country where you don't trust the ruling elite or you yourself are corrupt and fear reprisal. How do I know this? I've talked to a quite of few of these people; the highest number of properties that one person has owned and rented out for monthly income is 4 and he was considering bringing in a few more million from his bank in Dubai because he realized that the UAE has little future when global warming gets out of control. I can go on about the CPC members I've talked to, etc. Further more I know bankers that work for the chartered banks here and the stories they tell me of HNWI are simply ridiculous. Basically all this foreign capital tremendously augments the market, driving up prices for younger Canadians entering the real estate market for the first time -- this is the other side of the coin for those that didn't already have real estate downtown. Long term it does look good. Capital inflows are being clamped down due to the visa program being pulled and more capital restrictions on banks, which means that all of these prices will not be sustainable along with the fact the at some point interest rates will be going up (Carney did his damage before moving off to replace King because of the Libor market rigging at the BoE) and he has been doing similar stuff to England's housing market. Those of us who did not purchase properties outright have this to deal with once interest rates shoot up: http://www.cbc.ca/news/business/current-inflation-is-killing-off-the-canadian-middle-class-don-pittis-1.2711415 http://www.cbc.ca/news/business/current-inflation-is-killing... http://www.cbc.ca/news/canada/middle-class-canadians-just-how-stretched-are-you-1.2572714 http://www.cbc.ca/news/canada/middle-class-canadians-just-ho... At the end of the day gentrification in Toronto means less disposable income for those who can barely afford to have rents extracted from those that moved in their foreign capital. Although it's not as bad as the US where hedge funds are starting to buy up properties en masse.
BrainInAJar 12y ago
The neighbourhood I live in in my city was once crappy, got gentrified when living in the gay district got popular, and thanks to the power of inflation, is now just a nice, modest, middle class neighbourhood again.

by anifow 12y ago

jaman12 12y ago

hrm, this is not happening very slowly and has been going on for quite some time. It stretches all the way up into North York and is happening all through the GTA. Due to the free flow of capital and the visas that Canada was handing out to immigrants with significantly large amounts of capital you could come to Canada with millions and buy up a few properties to then rent them out. It makes sense to move your capital away from a highly unstable middle eastern/Asian country where you don't trust the ruling elite or you yourself are corrupt and fear reprisal. How do I know this? I've talked to a quite of few of these people; the highest number of properties that one person has owned and rented out for monthly income is 4 and he was considering bringing in a few more million from his bank in Dubai because he realized that the UAE has little future when global warming gets out of control. I can go on about the CPC members I've talked to, etc. Further more I know bankers that work for the chartered banks here and the stories they tell me of HNWI are simply ridiculous. Basically all this foreign capital tremendously augments the market, driving up prices for younger Canadians entering the real estate market for the first time -- this is the other side of the coin for those that didn't already have real estate downtown. Long term it does look good. Capital inflows are being clamped down due to the visa program being pulled and more capital restrictions on banks, which means that all of these prices will not be sustainable along with the fact the at some point interest rates will be going up (Carney did his damage before moving off to replace King because of the Libor market rigging at the BoE) and he has been doing similar stuff to England's housing market. Those of us who did not purchase properties outright have this to deal with once interest rates shoot up: http://www.cbc.ca/news/business/current-inflation-is-killing-off-the-canadian-middle-class-don-pittis-1.2711415 http://www.cbc.ca/news/business/current-inflation-is-killing... http://www.cbc.ca/news/canada/middle-class-canadians-just-how-stretched-are-you-1.2572714 http://www.cbc.ca/news/canada/middle-class-canadians-just-ho... At the end of the day gentrification in Toronto means less disposable income for those who can barely afford to have rents extracted from those that moved in their foreign capital. Although it's not as bad as the US where hedge funds are starting to buy up properties en masse.

BrainInAJar 12y ago

The neighbourhood I live in in my city was once crappy, got gentrified when living in the gay district got popular, and thanks to the power of inflation, is now just a nice, modest, middle class neighbourhood again.