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General Discussion / hold your nerve on prices, renters
« on: May 27, 2022, 11:00:12 pm »
Hi,
I've been waiting for this day. That is, the day some big banks wake up to the unrealistic housing market we're in. That's saying something, as we should all know that banks have a vested interest (pun intended) in creating money for mortgages (you don't still believe the Bank of Canada creates money, do you?) that they're able to charge interest on.
Anyway, have a look at https://betterdwelling.com/toronto-suburban-real-estate-is-76-overvalued-highest-in-all-of-canada-bmo/ This looks like reality biting, except they miss out another important factor, too: renters just plain can't afford the extortionate rents being charged anymore!
If you want a different perspective (from another bank with an interest in continuing to print money, make interest, and drive inflation), check out https://betterdwelling.com/a-bubble-eh-scotiabanks-very-pessimistic-outlook-is-real-estate-prices-rise-10/ No prizes for spotting the sarcasm in this one.
My point is that we're at the tipping point now and any renter looking/needing to move would be well advised to hold their nerve and not agree to today's rents. I know these articles are talking about house sale prices, but the implications for rents are clear. Drive a hard bargain. There will always be outliers and good value may get snapped up quickly, but I'm seeing lots of units that are well overpriced. I'm seeing very average (or below) places at high prices staying on the market for weeks or upwards of 30 days.
We renters need to play our part by not playing into their hands. Hold your nerve, renters.
I've been waiting for this day. That is, the day some big banks wake up to the unrealistic housing market we're in. That's saying something, as we should all know that banks have a vested interest (pun intended) in creating money for mortgages (you don't still believe the Bank of Canada creates money, do you?) that they're able to charge interest on.
Anyway, have a look at https://betterdwelling.com/toronto-suburban-real-estate-is-76-overvalued-highest-in-all-of-canada-bmo/ This looks like reality biting, except they miss out another important factor, too: renters just plain can't afford the extortionate rents being charged anymore!
If you want a different perspective (from another bank with an interest in continuing to print money, make interest, and drive inflation), check out https://betterdwelling.com/a-bubble-eh-scotiabanks-very-pessimistic-outlook-is-real-estate-prices-rise-10/ No prizes for spotting the sarcasm in this one.
My point is that we're at the tipping point now and any renter looking/needing to move would be well advised to hold their nerve and not agree to today's rents. I know these articles are talking about house sale prices, but the implications for rents are clear. Drive a hard bargain. There will always be outliers and good value may get snapped up quickly, but I'm seeing lots of units that are well overpriced. I'm seeing very average (or below) places at high prices staying on the market for weeks or upwards of 30 days.
We renters need to play our part by not playing into their hands. Hold your nerve, renters.