Quote:
Originally Posted by Hehe
Should the loonie drop further too fast, the housing market will see some fire sales for those investors who can't wait it out. Sure many of them bought in cash and all, but it means that their 1M CAD property, which cost them about 1M USD when they bought it originally can worth as much as 30% less (in USD terms) within this year. And how long would it take to recover is anybody's guess.
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For the people who bought with cash and are not living in their properties while paying the strata fees and/or property taxes, I don't think this drop in the CAD will really make them pull out. As long as they are holding on to the property, there is a chance it will go back up.
The minute they fire sale, they will realize their losses.
But of course, all this is merely speculation, and how many of them bought at the height of the market?
Some of them might have bought when the market was 20% lower than the peak, which is still lower than it is now so their potential losses may not be as great as we may think.