Are Real Estate Prices in Canada Out of Control? Ep. 14

you're the man i appreciate that for the black community we're trying man you're a real male figure in the community for real i'm just out here trying to collect hey bg squad welcome to another episode of the brandon gonna show how you feeling today i'm hoping good because if not don't worry we're going to warm you up but listen we got a lot to talk about but before we even get there let's take a pause let's take a break and do the homework and you know what that entails we got to make sure that we hit that subscribe button touch that notification bell not once maybe twice joking just make sure you hit both of them and also follow us on all of our social media because we produce content for you every day and trust me it's goodness but let's get back to why we're here because this episode we want to talk about something that everybody's talking about and no i'm not talking about kovid i'm talking about real estate i'm talking about the significant increase in home prices that has been witnessed right across this country you know everybody's talking about it some people are benefiting from it and others are worried that maybe they are going to miss out on their dream of home ownership you know if you didn't know home prices across this country the average price has now hit a record during this pandemic so what does that mean to you or your family let's go find out it's time for your voice for the people by the people [Music] we are going to be talking to people about the big topic on everybody's mind which is real estate home prices it is what it is you can't escape the conversation no why because we all need somewhere to live the question is can we all afford a place to live that's the problem don't know about in this city hi oh thank you i just have to say i love you oh thank you do you want to be on the show we're talking about home prices home prices yeah like real estate prices like what do you think about home prices in this city across this country honestly i find it ridiculous too expensive way too expensive in toronto yeah they are expensive so expensive yeah the rent is so expensive even the rent is expensive too expensive eh can't even look for nothing at this point you know like it's not affordable uh ridiculous basement dweller for life yeah yeah you say well yeah i live with my grandma right now and like i'm a nurse and i've been saving to buy a house and it's just not realistic how much have you saved not enough like your your budget that you think you've saved now goes to here yeah so it's not even worth it how does that make you feel not very good because i work for a living and i purposely went to school to make money for a living and now i'm feeling like it's pointless i just feel that i have to work more and learn more to like be here i have a my husband and i each we both work to income family and even we can't afford to buy a condo in toronto or anywhere else just too expensive yeah i feel like you're telling me that like exasperated i think people will be like just really working for paying mortgage you know like uh for like 20 years for 30 years of their life will be just working for the mortgage no more freedom anymore you know you don't have the extra money to think of like building up uh a startup company you know or like spending some money you know to uh to have some entertainment you know it's it's not good it's is a good way to live do you own or do you rent right now oh i'm renting uh i'm i'm not buying anytime soon so right now i'm renting right yeah i live with my boyfriend great right relationship good though yes don't we're trying to save up order but because obviously living costs being in the city it's already high like between food transportation all the other stuff and plus trying to save up and buy a house kind of like and we're realizing now and we're realizing a good thing that's happening now is that there is more um financial like classes like because in school they didn't teach them about taxes they decided third year none of that they teach you about geometry they i still want to know you see the linear what what when we're what are we supposed to use that i don't even know what linear means anymore like learning about um and trying to stop this nest out there like it's grateful now but it's like where was it 10 years ago yeah because 10 years ago we could have definitely needed for nah now it's like okay great all these things are but it's like it's like you feel you're 10 years behind basically yeah now we're from niagara falls okay and we have everybody from toronto coming down buying the houses down in niagara falls area and it has i think our prices are up by 40 over the last 12 months so homes used to sell for like 450 are now going close to a million dollars that's wild yeah it's get in now or it's definitely a buyer's buyer's market down there for sure we own our home in niagara falls so i guess this has kind of benefited you in a way it is definitely i mean we have four homes so we just sold one about two months ago can i get one sure there you go well i give you an idea we bought it for we bought it six years ago for 600 yeah and we just sold it for 1.35 wow so big big difference big difference so hey cameraman chris you look a little different today introduce yourself to the people ba yeah what's your name i'm brandon i'm the third third brandon of the group as if there weren't enough um editor and i also i've been shooting a lot of stuff for uh for the network and i'm just excited to be here do you want to do you dream of buying a house yourself me and my girlfriend we probably wouldn't be able to live like in the gta at all like we've already been looking and i think only affordable areas have been like kitchener waterloo or like a lot of outskirt areas like cambridge stuff like that like i don't think we'll realistically be able to afford anything in the city or nearby the gta i you know you should probably do you should ask your boss for a raise maybe i should ask him right now can i get a raise it's so beautiful today i don't think there's any raises up there where this guy's looking do you know what the average price is of a home in this country no it's no like over seven hundred thousand dollars that does not surprise me even higher here in toronto it doesn't surprise me the average price in toronto alone is more than a million dollars yeah for a condo one like no doubt yeah so what are you gonna do everyone's leaving the city are you gonna leave as well i don't know but you love the city yeah so i don't know do you think there's a problem going on right now it's a problem of course it's a problem she's living she's a grown woman with a full-time job who can't afford to buy even a condo in toronto do you think the government should do something or are they doing anything but what can they do i mean there is things they can do but if they implement those measures would that crash the market and if it crashes the market what about people who just got into the market yeah you know what i'm saying so you jump into the market now you have this crazy mortgage and then you know the government implements measures to reduce the price of your home or homes and now you have a mortgage that's more than the price of your home and then when i asked her when i asked her would you move to a different city you know are you going to leave as well i don't know but you love the city yeah so i don't know the story that a lot of you are not talking about even small talented cities across this country are seeing crazy price increases you know what i'm saying like it's not just the gta it's all lacrosse hey guys how's it going mind if we ask you a quick question for our show come on don't be camera shy it's nice to meet you you too i follow you by the way oh my goodness thank you yes when i see you later tv24 i'm just like we better be doing something you cannot just disappear i will be very obsessed i'm trying so son you're doing it you're doing ashley nice to meet you oh is this your sister what's your sister's name katie oh that's my sister's name too hi katie waguan like long time hold on hold on what are you making dinner right now jeez where where's she where's she at no no no no no no no i live downtown okay so nice to meet you oh man i mean people have so many questions so many concerns about this real estate market and everybody feels like they're afraid of missing out potentially missing out and i know we want to try to answer some of those questions so what we've done for you okay listen to this we've gathered two amazing real estate experts that are going to provide the advice that you need so you can make the next big decision it's time for open and honest [Music] jasmine and dimitri thank you so much for joining us on the brandon gomez show first off wow i mean what a year this last year has been how have you guys been handling how have you guys been coping well we were just talking about our rogers moment on monday and how hustling in real estate taking care of clients and having no phone service no data like it was like a really good moment when you're driving and there was no pinging but at the same time it got real as soon as you got wi-fi like everything came in like overload how was it for you dimitri same thing like trying to negotiate a deal that day and it was just like some people are on rogers some people are on bell and uh we had to like whip out all the stops to try to communicate it's like i can't imagine trying to do this job you know 10 years ago before a lot of this stuff was already in place but it's been crazy let's dive into it because we've been speaking i don't know if you guys know but part of our show we actually hit the streets in your voice and so many people are telling us that they're starting to feel left out out of the market are you guys hearing that as well dimitri i'll start with you 100 i mean i've had you know a few agents now who we take on showings and they're just like for what i'm approved for toronto doesn't have anything that i can you know move in comfortably or even buy and they're having to look at other markets wow what about you jasmine what are you noticing so listen i would just say list there's always opportunity so just be prepared right to get into the market and for our clients that got in last year are they are super thankful that they got in and we pushed through because their property has already increased in value you know everybody thought kovan 19 was gonna put a hamper on prices you know like bring them down because of the effect on the economy and everything like that but you look at where prices have gone it's been the total opposite like just like all the way up like what is factoring into that what's contributing to that jasmine well two things key things is i've been in real estate since 2004 we've never had interest rates 1.5 1.8 2 so that helps buyers because your monthly payment is much lower like average four percent we've been working with now it's cut into half so although you're paying a higher price your monthly payments are lower also inventory levels of the amount of homes on the market is half of what we had last year and we already had a shortfall last year so let me ask you both are you busier now during covid compared to pre-coven as soon as the pandemic hit it was a little like iffy but for the people who figured out how to maneuver the market and like i would say i'm busier than i ever have been a lot because we're working more efficiently than we ever have been instead of going out to a meeting i can crush you know three or four meetings on zoom well for myself last year we seen a 30 increase in our business um we were super busy it just came first quarter it was a little quiet last year when we were first figuring out how to move how to work during cove but how to protect our our team and our clients and then once they said real estate is essential it was like non-stop non-stop real estate that's what it's been like for us and we're super thankful because we know other small businesses are not able to open so are there any buying opportunities right now because i think a lot of people are wondering like everything is going up drastically if i want to get in if i want to finally jump into the party how do i jump in there's definitely opportunities and they go into specifics i mean it really depends on what the client needs and what the best opportunity is for them um but i think it's important that people who are buying in the gta that they set their expectations this is not buying a home in edmonton in some of these slower markets it's a different process it is normal that you're running into you know um multiple offers this is a really big opportunity to build equity to build uh wealth moving forward for you your family your kids and you need to make it a priority it's you know it's really easy to just throw your arms up in the air and say okay it's unattainable and that's it but you need to plan ahead you know don't go talk to your mortgage broker or your real estate agent three months before you're ready to move go talk to them right now make a plan maybe you need to clear up some credit maybe you need to save a bit more maybe you're ready to go and you don't even know it uh but you need to plan you need to make it a priority because this is something that you're really um going to benefit from in the future so let's talk about first time home buyers young people or maybe you're not so young maybe it's that maybe people have been saving for quite some time and i want to dive in on that process because i think for a lot of people it's confusing so where do you begin and if you're in the gta or in one of these expensive regions across the country what should you actually expect first thing first is budget and savings so we even have a budget because we want to help our buyers get into the market and talk about things that are not the sexiest thing to talk about budgeting and you know what's crazy brandon the biggest thing where people you know it's food eating out that's what kills the savings guys so now with the lockdown a lot more people are saving money because they're not going out they're not spending on all those other variables that don't really matter as much knowing your credit we do the first of the month we do a credit challenge pull your credit and i'll tell you once your credit is climbing you're very uh confident let's say and they share it with us we have a jlt credit challenge and we share our credits at the first of the month the credit score and we encourage that in our community and our age group to talk about that because like we are the generation to make the difference and have those open conversations like right now jasmine i want to jump in really quickly just to get even more information on that so when we talk about savings like if you want to buy a home here in the gta where the average price is more than a million dollars how much do you need to have saved okay so five percent and that's the thing to get into the market is five percent down under one million right a sweet spot for first time buyers is usually anywhere from six hundred to eight hundred thousand guys so five percent of 800 is 40 000 you can you can um you know get from your rsps your help with your down payment you can talk to your your family as a gift there's so many options guys five percent of 800 000 purchase price is 40 000 it's doable and then there's closing costs and we average about two percent for closing costs and that's what would help you with your first home purchase okay that's a good point and i want to touch on that second point about credit score because i think everybody has a different credit score when they look some people are in the 600s ah some people are in the 700s decent 800s you're laughing so dimitri talk to me about credit score and how important that is and where is that sweet spot yeah i would say you definitely want to get it up over the 600s this is gonna be where you talking to your mortgage professional uh really comes in play and they're gonna give you all your best options but at the end of the day uh like jasmine was saying you know reach out early to a real estate agent who can connect you with a good mortgage broker or if you already have a mortgage broker and just understand that it's free our service when you reach out we're not going to charge you for a consultation they're going to give you free information to get you started on your path okay so if somebody is at that 40 000 mark in terms of savings you know but you know maybe they still need a little bit more are there any alternative routes they can you know go down in terms of getting to that sweet spot to have that down payment ready well a couple of things right is we every client's different maybe they want to adjust their purchase price so that they can get in sooner that could be an option maybe they can lean on some of their accessible line of credits or something like that but our mortgage professionals will go over best options with them maybe they can touch on their tfsa savings maybe they can talk to a family member just to help with closing costs how much further do you guys think prices are going to go all right like no honestly let's debate here because we've talked to some people who've said that listen there could be a crash coming like they're looking at these prices and you're looking at the escalation and it's quite drastic you know some regions have seen a 30 increase year over year like some people have said that they feel like a crash is coming so where do you think prices are going to go up up up or down down down let's get into it a general rule of thumb is that every 10 years real estate was doubling we are hyper accelerated right now however with rates remaining so low as long as they're low the prices are going to increase once we get to about 25 000 listing that's what we're going to find it's going to move more into a buyer's market but we're far from there as of today before our call i check we're at 12 000 listings on the toronto real estate board for listings that we have right now so we're half of what that it's going to take to turn into a buyer's market guys and then once they open up the doors for immigration guess what guys you're going to regret if you don't buy real estate dimitra i see you nodding your head you agree 100 i think well the government of canada is going to be allowing more immigrants in the next three years than they have since i think it was like 1914. uh an astronomical amount of people are coming to the country after the pandemic and half of them are going to land in the gta and i think an important thing to understand for where prices could go is when you live in toronto or you're born in toronto yes the prices seem high but a lot of these foreign investors people who are coming in and pouring their money into toronto from other countries they're looking at toronto comparing it to other similar cities new york san francisco paris france singapore and we are literally the discount rack of the global like of the global real estate market are you saying we're nordstrom we're nordstrom what is it nordstrom racks we're we're winners we're winning new york 1900 we are winners i'm telling you it's a bargain and that's why all these foreign investors are dumping their money into condos and houses and they're coming here because they're looking at new york uh a condo in new york is going to be 1900 a square foot in toronto we're just over a thousand people are moving out of those cities because it's so expensive toronto is still growing population-wise year over year and people have been talking about a crash i can find you an article where people are talking about a toronto crash from 1912 sorry from 2012 2013 2014 2015 the same article gets published every single year i'm not saying it's not gonna happen or it will happen when agents get their crystal balls out we you know end up looking pretty dumb but i want to harp on at least one this last point which is what are some things that people should avoid if they are in the process of saving up or in the process of wanting to buy you know their first home what should they make sure that they do not do to mess up that process don't buy a car don't talk to me so don't get a new bmw absolutely look if you're years away yeah yeah don't like here's the thing you know what buying in toronto is not easy uh for anyone and it comes with sacrifice okay and you have to decide what's more important is buying this asset that is gonna maybe change me my family my future family's life and creating that general generational wealth is that important or is this bmw important so why shouldn't they buy a car explain that process why so the mortgage brokers um they're going to look at a depreciating asset that is like super that is extremely expensive and it is going to kill your approval score so i mean alternatively you could sell the vehicle go get pre-approved buy a house and then if you want to go buy it again after you buy the home that's on you but just know that financing a vehicle or any sort of like depreciating asset is really going to hurt your ability to purchase a home and actually one thing that i want to throw in there if we're talking about you know tips that can help you get into the market a lot of people don't know is that if you do get a property with a rental suite say you're only approved for like 800 000 um but if you have find a home with a rental suite a separate rental suite um you know the mortgage broker can potentially bump up your approval to say like a million and you will actually with the rental income coming from the secondary suite your payments will actually be lower on the million dollar property than they will be on the say 800 000 um i'm using rough numbers but they could be i've run into that quite a few times guys this has been such a great conversation i thought we were going to be teaching our viewers something you've actually taught me something so i appreciate that you promised me gonna come back on the show again of course yeah all right and then you're gonna help me make even more money too right that's what we do i love it i love it jasmine dimitri thanks so much for joining us here on the brandon gonna show you're welcome guys bye all right take care guys all right i mean listen it's real estate right it's a world so unknown to so many people and trying to figure it out and the right timing it's always going to be difficult but at the end of the day it's still a hot topic and the reality is it's going to continue being a hot topic and if you purchase a home or a condo or whatever it's probably going to be one of the biggest purchases you ever make in your life so you want to make sure you're equipped with the right information and i really hope this episode has helped with that even a little bit so let us know in the comment section what you think right now in the meantime remember if you have any news stories you want us to check out or follow email us news brandinggonashow.com because throughout the week we got news you can use and here's the thing it's the new six o'clock news just in case you forgot and just in case you didn't remember next sunday is our big our massive bg show one-on-one with canada's top doc dr teresa tam and i want to tell you right now going to give you a little secret it's a conversation that's for the books and that you will not see anywhere else hey bg squad we say this every single week we love you for watching we'll see you same place same time [Music] foreign [Music]

Channel: The Brandon Gonez Show

Views: 5,413

Rating: 4.9851851 out of 5

Keywords: Canada, Canada Real Estate, Canadian Home Prices, Rent or buy a home in Canada, Toronto real estate, Toronto home prices, Canadian homes, Home costs in Canada, How to buy a home

Id: JhLaCoYeflw

Length: 24min 34sec (1474 seconds)

Published: Sun Apr 25 2021