Latest / Bloomberg Intelligence / Pemberton's Durcikova: Investing in Toronto Real Estate (Audio)

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Pemberton's Durcikova: Investing in Toronto Real Estate (Audio) · Bloomberg Intelligence

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  Speaker 1: Broadcasting live to New York Bloomberg eleven Brio to Washington,
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  Speaker 1: This is taking stock. Coming up on taking stock, will
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  Speaker 1: take stock of Canada, specifically real estate in Toronto. I'm
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  Speaker 1: gonna find out comparisons between Toronto and some major US
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  Speaker 1: metropolitan areas. And as much as the Canadian dollar has
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  Speaker 1: gained about five and a half percent against the US
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  Speaker 1: Amazon's effort woo shoppers with exclusive deals, though, has left
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  Speaker 1: out or even maybe tearing some customers away because once
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  Speaker 1: for the rest of the market, Amazon Trading lorder today
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  Speaker 1: by one percent. Again. The SMP five hundred index up
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  Speaker 1: set up eight tenths of one percent to thirty two
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  Speaker 1: news from around the world. Thank you, Charlie from the
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  Speaker 1: Bloomberg newsroom. I'm Matt Miller. Bernie Sanders has endorsed Hillary
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  Speaker 1: He also met with the families of the victims. White
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  Speaker 1: House spokesman Josh Ernest said the President called the families
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  Speaker 1: killed by police in Louisiana and Minnesota last week. Meanwhile,
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  Speaker 1: how Speaker Paul Ryan is praising the police chief in
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  Speaker 1: Dallas in the wake of last week's murders. I think
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  Speaker 1: The local fifty four unions as workers from the three
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  Speaker 1: last night. Workers at Harrah's, Bally's, and Caesar's reached a
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  Speaker 1: deal July one, a vote on the contract reached with
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  Speaker 1: Matt Miller. This is Bloomberg, Charlie, and we thank you
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  Speaker 1: what again Recapping stocks higher SMP and the Dow trading
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  Speaker 1: at records SMP five hundred index up a gain of
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  Speaker 1: eight tenths of one percent. I'm Charlie Palatin. That's a
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  Speaker 1: Bloomberg business flash. You're listening to taking stock with Kathleen
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  Speaker 1: Hay and Pim Fox on Bloomberg Radio. House prices in
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  Speaker 1: Toronto they continued to surge as would be buyer's struggle
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  Speaker 1: with a lack of supply in a red hot the
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  Speaker 1: state market. This all according to a report released by
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  Speaker 1: the Toronto Real Estate Board. So while there are there
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  Speaker 1: opportunities in real estate in Toronto compared to metropolitan regions
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  Speaker 1: in the United States. Marianna Derskova is a broker for
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  Speaker 1: you town Home Exclusive and the Pemberton Group, and she
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  Speaker 1: joins us now from Toronto, Canada. Marianna, thank you very
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  Speaker 1: much for being with us. Tell us about the current
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  Speaker 1: state of the real estate market. For residential properties in Toronto. Well,
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  Speaker 1: thank you for having me. Um. There is no denial
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  Speaker 1: that the Toronto is the commercial and a cultural horus
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  Speaker 1: of Canada. It is. It is definitely becoming a world
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  Speaker 1: class city over the next couple of years. Last year
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  Speaker 1: we by past Chicago and we became the fourth largest
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  Speaker 1: city in North America with the two point a million
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  Speaker 1: people living in a in a city city of Toronto
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  Speaker 1: and then over six million people living in a g
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  Speaker 1: T a UM. When you compare the prices uh air
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  Speaker 1: to let's say New York market, we are definitely underprised.
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  Speaker 1: And you can go further and just all over the
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  Speaker 1: globe and compare the prices of the of the really
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  Speaker 1: estate to to London and other metropolitan in the in
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  Speaker 1: the world. UM. On average, the prices in Toronto are
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  Speaker 1: probably three to five times less and cheaper than than
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  Speaker 1: would you guys experiencing in New York. Well, an average
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  Speaker 1: house in Canada's largest city, Toronto, a cost about seven
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  Speaker 1: hundred and fifty thousand dollars in June, and that's a
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  Speaker 1: nearly seventeen increase from June of twenty fifteen. What do
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  Speaker 1: you get for that kind of money? Well, you probably
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  Speaker 1: get around fifteen fifteen to eighteen hundred square feet townhouse
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  Speaker 1: frontage probably anywhere between fifteen to twenty And what about
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  Speaker 1: the buying capacity the supply that would match the buyers
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  Speaker 1: In other words, I understand that there's not a great
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  Speaker 1: deal of apply on the market. There is It's definitely
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  Speaker 1: what we're experiencing right now is the sellers market. There
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  Speaker 1: is definitely a shortage and that's why the prices is.
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  Speaker 1: You can see when you look at the comparisons between
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  Speaker 1: the two thousand and fifteen and and the current year,
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  Speaker 1: the prices for the townhouses increased by fifteen point seven percent.
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  Speaker 1: And some of the regions in Toronto like Peel or Halton,
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  Speaker 1: York and Durham. What if you could tell us about
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  Speaker 1: those areas for people that are not familiar with Toronto.
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  Speaker 1: So these are part of the g t A and
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  Speaker 1: they are known as a narrator Toronto area correct, correct,
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  Speaker 1: And they are known as the nine oh five area,
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  Speaker 1: so suburbia of the of the Toronto. People typically gravitate
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  Speaker 1: towards those areas as they can get a larger home
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  Speaker 1: for for a less money, but they often dealing with
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  Speaker 1: the with the commute so even the prices in a
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  Speaker 1: in a g T A are increasing over the over
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  Speaker 1: the last they has increased over the last year, but
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  Speaker 1: mostly they really increase in a in a downtown area
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  Speaker 1: in the four one six area. Tell us about that
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  Speaker 1: four one six area, and also maybe just adding a
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  Speaker 1: little bit about luxury, because I understand that the price
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  Speaker 1: of luxury apartments has increased. The four million dollar plus
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  Speaker 1: categories seen the biggest sales volume increase correct in in
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  Speaker 1: in Toronto. Correct So, so in the last few years
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  Speaker 1: it was it was market as a million dollar and
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  Speaker 1: plus market. Today I would really go as far as
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  Speaker 1: push it to the three million and up because the
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  Speaker 1: average price for a detached home in the four one
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  Speaker 1: six in a in a downtown area is one point
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  Speaker 1: two million, So that typically buys you a detached home
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  Speaker 1: in the in in in the prime neighborhoods. But if
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  Speaker 1: you're really looking for something luxurious, you're going to have
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  Speaker 1: to probably spend more than three million dollars. That applies
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  Speaker 1: for a detached home, for the townhouses and also for
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  Speaker 1: a condominiums. Now, Marianna, you spoke earlier about the quality
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  Speaker 1: of life in Toronto, I'm wondering if you could offer
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  Speaker 1: some details about schools and how they compare with perhaps
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  Speaker 1: educational institutions in the United States. We are very similar
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  Speaker 1: in terms of the of the quality of the lifestyle
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  Speaker 1: that you experience. Let's say in New York the school
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  Speaker 1: there is a grade educational system on an elementary level,
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  Speaker 1: on a high school, also on a on a university level,
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  Speaker 1: we have the well known universe on the world. We
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  Speaker 1: attract a lot of international students. I'm talking about the
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  Speaker 1: University of Toronto and UH. In terms of the of
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  Speaker 1: the health care, UH people have the access and you know,
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  Speaker 1: it's it's it's it's free. So it's a little bit
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  Speaker 1: of socialist approach that Canada. Canada has and people people
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  Speaker 1: do like it. UM. In terms of the culturally, you know,
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  Speaker 1: we have a variety and the and the various museums.
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  Speaker 1: We have the a geo, they have the they have
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  Speaker 1: to have the wrong They have a lot of culture exhibitions.
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  Speaker 1: A lot of well known artists come to come to Toronto.
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  Speaker 1: They are attracted because of the vibemen, because of the
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  Speaker 1: lifestyle of the of the city has to offer. UM.
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  Speaker 1: In terms of the restaurants, Vogue magazine just named Toronto
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  Speaker 1: in their March issue as a place to go and
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  Speaker 1: visit for all the foodies. I want to thank you
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  Speaker 1: very much for sharing these details with us. Marianna Derskova
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  Speaker 1: is a broker the U town Home Exclusive Broker at
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  Speaker 1: the Pembertons Group in Toronto, Canada. And just to note
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  Speaker 1: that the S and P TSX composite index of Canadian
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  Speaker 1: stocks here today up more than eleven percent. If you're
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