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Perhaps busy scooping up bargains from those who are at risk of defaulting on their mortgages and other debt obligations, facing job loss, tenant defaults, etc., real or apprehended.
 

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Funny thing is someone just sold a house identical to mine a couple doors down for a good 15% above asking 10d ago, setting a new record on the street. I'm not sure that the housing market has started to correct yet.
 

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Real estate is very illiquid and laggy and it will take a long time for prices to reflect the underlying conditions. ZRE, the Canadian real estate index, is down 38% in 1 month. That is more reflective of the mood in the market.

Sure, you could buy real estate now, but why would you pay record prices and get in a bidding war? Better prices are coming for sure. It may just take some missed mortgage payments to get there. A million or two Canadians going unemployed soon.
 

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Perhaps busy scooping up bargains from those who are at risk of defaulting on their mortgages and other debt obligations, facing job loss, tenant defaults, etc., real or apprehended.
Cash is king, Would not be wanting to hold rental real estate. The crash cycle is just starting & will not be over till 2022. Already renters are going to have trouble paying rent & the government @ the bottom will allow them to stay rent free if they can not pay.
 

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Where is our resident rental expert?

Haven't seen him for awhile.
Their last post was this one on March 18.

There has also been some forum software problems recently. I know because I was experiencing them for at least a week. I could login successful, but when I read a post at the bottom I saw:

You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

If I click Reply with Quote I got:

vBulletin Message
P_I, you do not have permission to access this page. This could be due to one of several reasons:

1. Your user account may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
2. If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
 

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If I click Reply with Quote I got:

vBulletin Message
P_I, you do not have permission to access this page. This could be due to one of several reasons:

1. Your user account may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
2. If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Yeah, I can't look at attachments. Apparently I must be a new member with less than 5 posts. Can't wait to see what the new software will be like. Sigh.

ltr
 

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JAG said he owned many low end rental properties and had used 100% mortgage leveraging.

If that were true, he would be at ground zero for defaulting low income tenants. I don't know if landlord can evict in his Province.

This is the black swan for that kind of real estate "investing". This is the scenario that could "never happen".
 

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I read AirBNB rentals are being converted to traditional rentals
I've been reading that the condo scene in the big cities is going to be extra bad with this downturn because:

1) A good amount of owners are doing AirBNB. Their rent will be zero.
2) A good amount of renters are doing airBNB subletting businesses. They have no skin in the game, and will immediately default on their rent and stick it to the owners.
3) Young tenants appear to have zero scruples during this crisis, and seem to be willing to try to screw the owners for short term gain (unknown long term consequences) for the slightest coronavirus-related excuses. I actually had to check myself yesterday from nearly succumbing to such thoughts, before writing the rent cheque and sending as usual...
4) Governments seem very supportive of issue #3, particularly after 20 years of news media stories about "evil rich landlords", and especially combined with the economic abandonment of millennials, many of whom are trapped in rentals with their young families.

All of these things will culminate in punishing apartment/condo owners severely.
 

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1) A good amount of owners are doing AirBNB. Their rent will be zero.
Good! Imagine living next to an airbnb, especially in a downtown condo. Loud parties all the time, garbage thrown everywhere, fights, drugs...

 

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Would love to see Airbnb hosts have their heads handed to them. Some are of good moral character renting for example while they are snowbirds. Others are simply slime acting as hoteliers. Municipalities have not been able to crack down enough on landlords trying to make a fortune on Airbnb rather than long term rentals for housing purposes.

Not directly applicable, but FWIW, a brand new multi-purpose building in our city designed for short term rentals (with furnished suites) is just obtaining their occupancy permit. They have announced they are now looking for longer term tenants, e.g. full summer and/or fall because the short term Airbnb crowd has vanished.
 

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Would love to see Airbnb hosts have their heads handed to them. Some are of good moral character renting for example while they are snowbirds. Others are simply slime acting as hoteliers. Municipalities have not been able to crack down enough on landlords trying to make a fortune on Airbnb rather than long term rentals for housing purposes.

Not directly applicable, but FWIW, a brand new multi-purpose building in our city designed for short term rentals (with furnished suites) is just obtaining their occupancy permit. They have announced they are now looking for longer term tenants, e.g. full summer and/or fall because the short term Airbnb crowd has vanished.
Sorry, don't understand the evils of AirBnB hosts. I'm puzzled when I seem to be taking the more 'pro-market' approach to the majority on this board. I understand the pressure that they put on housing availability/affordability, but isn't that just the market doing its thing?
 

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Sorry, don't understand the evils of AirBnB hosts. I'm puzzled when I seem to be taking the more 'pro-market' approach to the majority on this board. I understand the pressure that they put on housing availability/affordability, but isn't that just the market doing its thing?
I guess it depends. I'm a little ambivalent on the whole thing as I have used AirBnB on occasion. There are some "legitimate" hosts who actually offer the BnB experience in their primary residence as a way to supplement income or to meet people. It's the grey area of people buying dozens of condo units with the intent of running a "virtual" hotel, without playing by hotel rules. The problem with that is if you are calculating the city hotel accommodation capacity, it'll be a little skewed. In fairness, I don't know if anyone does, or if it is used to justify hotel building permits. As an aside, it does remove long-term residential accommodation capacity away from city residents which causes an artificial shortage and cause long-term rental prices to rise. It's pretty much similar to the Uber vs taxi arguments.
 

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Sorry, don't understand the evils of AirBnB hosts. I'm puzzled when I seem to be taking the more 'pro-market' approach to the majority on this board. I understand the pressure that they put on housing availability/affordability, but isn't that just the market doing its thing?
This would be perfectly fine IF the housing construction/zoning market and the mortgage market and the population market (immigration) and the job market, were all allowed to go along un-interfered with by the government...
The urban core housing environment would slightly transform to a more "touristy" feel as some 10% of the population was transient airBNB'ers, and the residents that didn't want to experience this would leave.

As it stands, nobody is allowed to build nice houses in desirable locations due to zoning and environmental regulations - materials, labour and renovation prices are through the roof due to building code and environmental regulations - mortgages are offered with no risk to banks, driving up prices, via CMHC regulations - more "new canadians" are flooding into the country without job offers, driving up housing demand - more economic activity is consolidating into urban regions due to big-business friendly and small-business unfriendly regulations.

People are trapped in urban environments living in 500sqft boxes, desiring to raise a family, they can't escape from from this living situation currently, and AirBnBs are making things worse.
 

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Tokyo is apparently the most affordable real estate market in the developed world because it relaxed zoning

If we did that it would mean destroying traditional urban cores and people's quiet back yards to into whatever the market demands

Population density is increasing while NIMBY boomers want established RE to stay the same
 

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I'm pretty sure after this virus gets sorted out, living in bee hive densities in our cities should lose their allure.
 

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Tokyo is apparently the most affordable real estate market in the developed world because it relaxed zoning

If we did that it would mean destroying traditional urban cores and people's quiet back yards to into whatever the market demands

Population density is increasing while NIMBY boomers want established RE to stay the same
Well, houses are very small/modest in Tokyo. Their houses tend to be pretty disposable, too. They are kind of intended to be knocked down in 20-30 years.

This is all fine, if this is what people want. But it is not necessarily a land of milk and honey when it comes to RE.
 
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