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The Storey Team : Toronto Real Estate

- Getting Rich Quick -

10 April 2018
Cam Woolfrey

Everyone loves a winner

I can imagine that anyone reading this article will have, at one time or another, thought about winning the lottery. Admittedly, I’m definitely in that category and on multiple occasions have been caught daydreaming about spending my 50 million in as many ways as you could possibly come up with. Trust me, you don’t end up with the response, “The second thing I would do is buy all the tickets for a jay’s home game so my heckles could be heard loud and clear” without running through this scenario at least a couple of times. In case you were wondering, the first thing I’d do would be to pay my parents a cool $1,000,000 just for putting up with me.

The possibilities associated with financial freedom are so enticing that when the headline “Come see Rich People Talk About Getting Rich” has always been a huge draw to sell tickets for any business event. There is no better example of this than the 2018 Toronto “Real Estate Wealth Expo” which for reasons I can’t explain also threw the word “Bitcoin” into there as well. It featured heavy hitting celebrities like Stallone, A-Rod, and even Pitbull who were supposed to, according to the site:

Yes, you too can harness the self-made business acumen of Alex Rodrigues whose speech can only have consisted of, “Just be one of the world’s greatest baseball players, get two $250+ million dollar contracts, take some PED’s and you’re set”

Now I’m not going to sit here and bash the event because there’s plenty of other articles that have. You can find some of them;



And Let’s not forget the live tweeting of Pitbull’s speech here:

I’d also like to point out that there were definitely some positives to the event as well with some of the lesser name speakers, but I’d like to use this opportunity to use this as an example of how people can be taken advantage of in today’s Toronto Real Estate market.

After record gains and a consistently strong past decade as far as appreciation goes, it’s very easy to manipulate statistics in a way that shows that real estate will just sky-rocket up for the rest of your life. I hate to say this, being a licenced realtor, but there is a narrative out there that exists among real estate professionals where people have almost forgotten that Real Estate (must like many other aspects of investing) goes through a cycle. There are some agents that truly believe Toronto Real Estate will go up every month until they die, and project this narrative to their clients.

Granted, it’s is incredibly difficult to predict the different points of the cycle, but if you look at it logically, at some point supply will have to outweigh demand and prices normalize. Right now there are supposed to be 57,000 housing starts in Toronto in 2018 while the population is expected to rise by +/- 150,000 in the same timeframe so by that metric we’re still a long way away. It could be a year, or it could be a decade! There are a lot of moving parts.  This is what makes Real Estate such a long-term game. 

The main driver, as we mention in our monthly videos for condos, which is driving the continued appreciation (even after all the recent changes last year) - is the fact that that they just can’t fill demand in the city nearly fast enough. So, when we talk about real estate cycles it will be very hard to tell when that peak in the cycle will be.

I unapologetically believe that Real Estate in Toronto is a fantastic buy. If you want the tried and tested way to invest (as all real estate investors should ideally be thinking), it’s a long-term strategy to get rid of any uncertainty and fluctuation in the overall market. This is exactly the type of advice you should be getting from your Realtor. If you aren’t, well I can’t tell you what to do under penalty of breaking RECO rules, but I can tell you that I believe you should REALLY be getting rational advice from your realtor if they’re doing their job in your best interests.

So when I see agents making claims that “Rent to own is a great way to build equity”,  or “Your condo can only go up”, and making claims that there’s no possible way a solid investment can get more costly monthly or take your into the red for a little bit it’s the exact same thing as being swayed by a big billboard with a picture of Pitbull on it. You’re getting the headlines without seeing the entire picture.

That’s where I’ll end this rant in making this one final point:

Buying a home or investment property is an incredibly important transaction to get right, because you really only have one shot at it. If you don’t have the right real estate professional in your corner, giving you the entire picture, there’s just a higher chance that you’re going to make a mistake. That’s why at the Storey Team we strive to give our clients unbiased, market based information which can help them make an informed decision based on the type of buyer/seller they are. 

Otherwise, you’re going to be left shocked and confused, just like the people who had to listen to Pitbull for three hours this past weekend.