Is Scarborough still a good place to invest?

[landlordie]

Hello everyone! Are any of you in tuned with the latest REIN recommendation on Scarborough? I know last year it was in the top 10, but lately all I`m hearing is that Toronto is due for a price correction of 10-20% (no one knows for sure of course). PLUS, the Scarborough Mirror recently published a report of the GTA which shows the average income in Scarborough as DECREASED 20% since amalgamation. REIN says prices come down when they cannot be supported by income levels.

The reason i ask is that i currently own a bungalow in a good part of Scarborough and while it`s producing positive cashflow, it`s now valued at the highest it`s ever been in the 12 years I`ve owned it. If a correction occurs in 2011 and i want to sell, I`ve lost out! So I`m wondering if it looks like a correction is coming, if I should "harvest" now and reinvest somewhere else or later? Any thoughts?

Thanks all!

 

[Rickson9]

QUOTE (landlordie @ Oct 6 2010, 12:28 PM) So I`m wondering if it looks like a correction is coming, if I should "harvest" now and reinvest somewhere else or later? Any thoughts?

Nobody knows and their guess is as good as yours.

Good luck!

 

[safsad]

There is a widespread sense that prices in the GTA are going to fall.The timeframe is very difficult to predict though.My house has doubled in price over the last 6 years and I am beginning to see houses take longer to sell and people reduce prices.I live in Mississauga.

Is it a good strategy to wait?Do u wait for all the lights to turn green before u invest?If u sell will u be able to time it perfectly so that u can get in the game again?

Most people who made money in the last 7 years did not know that the property prices would go up so high.I doubt that they will double again though.My sense is that we will flatline for a few years at least.Will the costs involved if u sell and rebuy be less than a potential price drop.If u got a good cashflowing property with good tenants and minimal headaches you may regret selling it.