Monday, September 8, 2008

Toronto housing not set to fall (maybe)

Here I am, predicting that housing in Toronto (condos especially) are a speculation nightmare, and the price is soon set to crash. But I see houses being sold (thousands not!), and along comes this article.

It comes the Price/earnings multiple in terms of rents, and Toronto is even. I got a taste of this when the son moved downtown. In a renovated 3 story Chinatown Georgian, there are 18 students, each paying $500 per month in rent! This house is a jammed row house, only 20 feet wide, if that. Their basement feels like a submarine, as you walk from living room, kitchen, to the bedroom cabins.

Now that's rent income!

(I still think we're due for a crash!)

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