Changing Market, whats really happening?- Brad's Perspective.

Okay so my job is to sell and buy homes, as well as, when called for, arrange mortgage's for my clients. I am a university Graduate in Business and have always taken an interest in global economies and Real Estate. So by all rights as a full time, full service, Real Estate Guru, I should know what and where the market is going, or atleast have a sense of what may happen. So I'll start by saying I have done a little bit of research, but a lot of this stuff comes from my knowledge of economics and my experience as a business owner, home owner and REALTOR. I will explain my views and perpective on the doom and gloom that we can see and hear in the global atmosphere and local news stations.

I have worked in cities as far north as Newmarket, and as far south as St.Catharines, but to say I am an expert in any of these cities would be a stretch at the least. I am a Peel agent and a Expert in Brampton. And from my experience in Brampton in the past few months there has been a lot of movement and even more speculation. People generally believe that there may be economic turmoil in the near future. {I know this because I talk to approximately 70 different home owners a week and over 3600 Bramptonians a year.} After further investigation I find that these beliefs stem largely form the insecurity of the European market, and our neighbors to the south. Canada as far as re-sale homes however seem to continue to push forward. Our debts are the lowest amoung the developed countries per GDP (Gross Domestic Product) and  our demand is still growing!  Statistics Canada projects that, by 2031, almost one-half of the population over the age of 15 will be foreign-born or have at least one foreign-born parent. The number of visible minorities will double and make up the majority of the population of cities in Canada.[1] Brampton itself is scheduled to grow by another 300,000 people before 2020! Whats more is that Brampton, Peel and the GTA for that matter is a giant bubble! Let me explain. Think about it, the  Oak Ridges Moraine and the  Niagara Escarpment both useful tools to protect us from completely overwhelming our surrounding forests and green spaces. These two green initiatives offer a unique opportunity to investers and residents of GTA. The position of this 'Greenbelt' not only haults urban sprwal, it creates another outcome unique to our cities. That is, it creates a compounding demand for the homes that are available within it's boundaries. If your doubt my observation see the map below:

(click the picture to go to the website.)

Within the green area lies endless restrictions for home builders and developers, so much so that they cannot create any new homes within them! So what are consumers to do. Well first they can either buy homes north or west of it, and suffer through hours of additional commute time and the dangers of sleep deprivation. Or they can bite the bullet and buy the prices set by the market within the GTA.

With Brampton being one of the more affordable area's within the greenbelt (within an hour of downtown Toronto- baring traffic accidents), with a reasonable comute time it is a hot bed of investment properties and also immigration! So I finally come to my point! Yes global economies can rise and fall & the issues across the world will eventually touch us in one way or another. However, I maintain the position that if you have something many others want, it doesn't matter what Greece or Ireland do with their money because people will still need a home with which to live in. We have the opportunity now to own a house and fix a rate at record lows. If the Canadian economy tanks people who do not have the capability to own will look to rent and rent prices will climb. If they climb, then a homeowner may look at options of renting their home and or even renting out rooms, but either way you will still have a certain degree of leverage because you have an asset that can work for you not against you. I would agree that renting is optimal in an envirnment of certainty, if you have an investment product that can surpace returns of 10+% (And thats a big If!) Also keep in mind you bear a very large amount of Risk with investments that can pay out at these levels) The Reality is that when these rents rise it is the renters that will pay the owners mortgage not the landlord/ owner. Home ownership is a priviledge and a right, utilize it while it is very easy to attain.  Real Estate, regardless which way the economy may turn (if it does) a house will always be an asset, not a liability!

The views i've expressed are simply a tiny view into what I have to say regading investing in Real Estate and the realities of our market. If you'd like a better explanation or want to ask a question you can do so on the comments below, or email me at


Bradley Mayer-Harman

Bradley Mayer-Harman

CENTURY 21 Millennium Inc., Brokerage*
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