All you need to know regarding the housing market in Toronto, Canada and abroad.
This week in Toronto: Speculators are super-heating the real estate market, 'marginal' home buyers set market value and Ontario finance minister wants Ottawa to help curb speculation.
Elsewhere: What the Canadian federal budget means for housing, where the American dream goes to die and a grassroots fight against gentrification in Berlin.
I had to innovate a reasonable way to get a look at the investors I was interested in so to quantify this investor demand, I looked at every freehold house (detached, semi and rowhouse house as opposed to condo) that has sold over the past five years and then checked to see what percentage of buyers listed their property for rent shortly after taking possession.
Speculators super-heating the Toronto real estate market (The Globe and Mail)
The study was undertaken by Realosophy president and broker John Pasalis, who noticed a twist in market psychology. People began moving from the time-honoured principles of real estate investing – that the cash flow from renting out the property should cover the expenses – to the assumption that it was okay to lose money every month because bigger gains would come from the sale of the property later on.
Toronto Property Speculators, Investors Snatch Up 3 In 10 Homes: Study (Huffington Post)