15 Feb << Live the Way You Want>> The Housing Market is Skyrocketing, the Destruction of the Middle Class, & Why I Purchased another Investment Property 大多伦多地区房价暴涨，使用这个策略让你买到好房

Hey Guys, 各位小伙计们

Happy Chinese New Year for those who celebrate Chinese New Year!祝福大家新年快乐！！

We’re starting off the new year with a big bang on the real estate side. Pretty much everything freehold in Ontario is selling like hotcakes. There are so many competing offers that 99% of the properties have bidding wars. 新年的一开始，要跟大家报告，房地产领域有爆炸性的成长。在安大略省，拥有地权的房子(freehold) 超级热卖，99%的房产都有很多人竞标。

Just a few weeks ago in Mississauga, a 3 bedroom, 2.5 bathrooms, 1700 sq/ft townhome listed in the $730,000’s received a total of 71 registered offers and ended up selling 138% over the listing price for $960,000. On the other side of the GTA, in Oshawa, townhouses are selling for anywhere between $650,000- $700,000, while single-family one car garage homes are selling anywhere between $800,000 – $850,000. 几个星期前，在密西沙加，一个3间卧室，2.5间浴室，1700平方英尺的联排别墅上架出售，标价73万，結果共收到71个注册报价，最终以96万的价格卖出。在大多倫多的另一边，在奥沙瓦，联排别墅的售价在65万至70万之间，而单户住宅含一车库的房屋售价在80万至85万元之间。

Out in Kitchener, a single property had over 188 showings in just 1 week and 51 offers on a Burlington property! Oakville lot prices up 20% in 60 days…single-family homes in Hamilton up 33% in one year. Now we’re even seeing offers again on Toronto condos. 在Kitchener（滑铁卢区的城市）的独立屋，在一週內就有188个人参观。 在Burlington則是有一個房一次收到51报价！ Oakville地段价格在 60 天内上涨了 20%…  Hamilton的單家庭房在一年里上涨了33%。现在我们在多伦多公寓也是看到無數的报价。 

Yes, the market has been crazy, many suspect that we are currently in another bubble and that prices will eventually drop. In my opinion, what’s unfolding now is merely caused by a low-interest-rate environment, inflation, and lack of supply. 是的，地产市场是相当的疯狂，许多人怀疑，地产市场即将泡沫化，价格最终会下降。在我看来，价格的暴涨主要来自于低利率环境、通货膨胀和房源供应不足造成的。

The government is printing more money than ever due to the pandemic. As a result, we have a larger money supply and debt as a whole has risen. This causes our money to be devalued. The purchasing power decreases, meaning the money you have is now worth less. People are looking for places to park their money so that it can maintain its value and grow. Bank and savings accounts only offer a 1% – 2% interest rate of return. The only other places where people can put their money are in the commodities market (e.g., gold & silver), real estate market, equities (aka stock market) and cryptocurrencies. This all in turn is affecting the middle class because the return on their savings is not enough to catch up with inflation. Hence we are seeing the destruction of the middle class as everyone is in a rat race. 由于新冠肺炎造成的影响，政府正在印更多的钞票。因此，货币供应量和债务逐渐上升。这导致我们的钱贬值。购买力下降，因為拥有的钱貶值。人们正在寻找標的，投入资金，以便将钱保持其价值和增长。银行和储蓄账户只提供1%-2%的利率回报。人们只好把钱放在大宗商品市场（如黄金和白银）、房地产市场、股票和加密货币的地方。这对中产阶级影响很大，因为储蓄回报永遠趕不上通货膨胀。

I don’t foresee real estate prices going down anytime soon given the following: 就以下理由，我不認為近期房地產市場價格有下降趨勢：

• Our target for immigration is still set to just over 400,000 in 2021 in Canada. We assume half of this number will be in the GTA. This does not include international students and those who have already been approved for permanent residency and have yet to arrive 2021年，加拿大的移民目标仍为40万。预计有一半将在大倫多地區。这还不包括国际学生和那些已经获准获得永久居留权但尚未到达的人。
• Yes, we’re in the middle of a lockdown but as soon as the borders open up again this surge or influx of people coming in will drive real estate prices up even more 是的， 我们仍处于封锁状态， 但一旦边境再次开放，人潮的涌入将推高房地产价格。
• Labour cost, material cost, land acquisition and development charges are increasing year over year. Therefore the developers will naturally defer the costs onto the buyers 劳动力成本、材料成本、征地开发费用逐年增加。因此，开发商自然会将成本放到买家身上
• We have an extreme shortage in housing supply as there is only 2.1 months of inventory on a national basis at the end of December 2020 – the lowest reading on record for this measure. 截至2020年12月底，全国地產供應库存量只有2.1个月，这是紀錄中的最低水平。

I even put in an offer on a 22-unit apartment building. Unfortunately, my offer got blown out of the water. There were a total of 17 offers and the final offer came in $350,000 higher than mine. Despite losing out, I didn’t feel discouraged at all. I try to stay logical as an investor and fall in love with the numbers and not the property. In this case it did not make sense.在最近，我甚至抢购一个22单元的公寓楼。不幸的是，我的报价並沒有被接受，因為共有17个报价，最终报价比我高35万，尽管沒搶到，我一点也不气馁。因为这个价格并不合理，作为一名有經驗的投资者，我尽量保持理性，用数字分析，避免当冤大头。

Despite losing out on the 22- unit apartment, I found another great investment opportunity. This is a 1500 sq/ft 4bedrooms, 3 baths freehold townhouse in midtown Toronto conveniently located to the Eglinton LRT line, DVP (major highway), and the Go Train. I ended up paying just under $1.1M for this. What attracted me to this was the payment structure which was just 10% until closing in 2023. Given that property prices are just beginning to surge on the outskirts of the GTA, paying this price in the heart of Toronto is a steal. As an investor, this is purely an appreciation play. My thinking behind this is that there are several exit strategies. 尽管在22套公寓中失利，我还是找到了另一个很棒的投资机会。这是一个 1500 平方英尺 4 卧室， 3 浴室擁有地權(freehold)的联排别墅，位在多伦多中城區，位置方便、位于埃格林顿轻轨线， DVP （主要高速公路）， 和 Go train等，最终以不到 110 万元购买。主要购买原因有一部分是因为在2023年完工之前我只要支付10%的押金。鉴于大多倫多地区的房地产价格正要开始飙升，能买到这样的投资真的很开心。作为投资者，这是一场升值游戏。投资的背后，有几个获利策略：

1) I can sell this as an assignment and make a decent profit from it. 1）利用转让的方式出售，得到不错的利润。

2) Sell it after closing to cash in on the appreciation. 2）在完工交屋后，因为已经升值了，将它卖出

3) Rent it out and have someone pay down the mortgage while it appreciates. 利用出租收的租金来缴交贷款，并在期间继续等待升值

Either way, this is an attractive asset in a very desirable location. I did not front the entire purchase myself. Instead, I pooled my money with other investing partners to minimize the risk and diversify my investments. 无论哪种方式，这是一个位置极佳、回报高的投资项目，但这个项目我并非单独购买，而是我与其他伙伴共同投入资金，以降低风险及让投资多樣化。

A lot of people have been approaching me and asking what they can do given the current circumstances to get ahead. I recommend the same strategy that I used which is to pool together and leverage each other’s resources to improve their purchasing power. 很多人一直联系我，询问在這樣的環境下，能做什么投資，我則是推荐上述的策略，大家一起匯集资源，提高购买力，共同投資。

If you’re interested in pooling your money with other like-minded investors with similar investment goals, feel free to contact me and I can connect you with others within my social network. This is not offered to outsiders as there has to be a certain amount of trust in the people I refer如果你有兴趣做類似的投資，请随时与我联系，我可以在我的社交圈幫忙找到志同道合的人。

<< So How do you want to live?>> 所以你想要过怎么样的生活呢？

Feel free to reach out to me for all your real estate needs, for further questions or if you would like to get into the multi-family apartment space. 如果你们有任何进一步的问题或想投资多家庭公寓，欢迎与我联系。

And if you haven’t followed me on IG already be sure to do so for the most up-to-date content, tips and advice on anything real estate related.

Personal Instagram: raymond.lui.realestate

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