Originally Posted by freeweed
Expect it to be much worse, if this doom and gloom scenario transpires. The condo market is filled with empty inventory bought up by speculators, combined with absolutely dreadful below-code construction that's only now being detected. Remember Vancouver's leaky roofs from a few years ago? That's just the tip of the iceberg. Imagine the value of your condo when you realize you just got hit with an $80,000 assessment. And that's for a minor problem with the building. 6 figure assessments are becoming common.
The foreign and speculative condo buying is, I think, the biggest thing that separates Vancouver and Toronto from some other markets (maybe Calgary is also like this).
I follow developments in Halifax and there is very limited speculative buying. Apartment developments are way more common. If a developer wants to build a condo, actual people who intend to live in the building come forward over a period of months. When a building is done it's typically 80% full of residents. In Vancouver, condos sell out overnight to a limited number of buyers.
If the values tank, residents can just stay put, assuming they haven't overextended themselves. Investors often *need* to sell in order to avoid losing money on mortgages.
Anyway, hopefully I can pick up something cheap in a couple years.