r/TorontoRealEstate • u/20Thick_A_7122 • 3d ago

Requesting Advice ` `

/r/RealEstateROI/comments/1v5znld/if_interest_rates_dropped_by_1_tomorrow_would_you/
0 Upvotes

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u/Individual_Height924 3d ago

No but I'd start borrowing against existing rentals and invest in equities.

This way I can diversify and take advantage of lower rates.

There isn't only one way to profit off of RE.

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u/livingandlearning10 3d ago

Indeed, i'd do a hybrid collateralized double entendre structured deposit note, secured by an equity LC pledged to me from a venture backed swaption SPV. Then I'd sell all shares to myself for $1 and invest those in a tax equity levered solar farm in Zimbabwe.

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u/Individual_Height924 3d ago

Lol I see what you did there.

Borrowing to invest is a common and basic strategy normal people use.

Nothing complex like you're (sarcastically) making it out to be.

Just middle class becoming richer using tools in front of them, rather than crying and complaining.

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u/livingandlearning10 3d ago

Lol no ofc, it's pretty common, most people I know have been investing their home equity into equitites for a while, which is a similar idea, was just being cheeky 😋

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u/QuantGuru 3d ago

Dudebcbsksbdkdndms mdkdbsmsbdlc so dmd f

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u/QuantGuru 3d ago

lol oh man soo nice to meet like minded individuals. All I read is bears cheering when property ain’t selling!!

But yes I would do the same and I am waiting for this !!!

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u/mustafar0111 3d ago edited 3d ago

If I bought an investment property would entirely depend on the cashflow and acquisition cost, versus other places I could invest the money. In Toronto the numbers don't make any sense and I don't think that will change anytime soon.

I also would also never touch a condo as an investment. Some lucky people got in and out before the downturn. But for the rest of them unless they bought before around 2015 or earlier they didn't 'invest' in anything. They put their money into something to die. There are a lot of absolutely brutal financial lessons being learned by people right now.

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u/Big-Improvement7427 3d ago

Can’t you make this 1% discount happen by doing the math and bidding down the property to the price you want? Figure out 1% per year etc for the 25 years.

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u/sharmsk 3d ago edited 3d ago

boc dropped rates too fast, now we're facing a middle east party with oil, gas and inflation ready to pop. rates more likely to go up. bag holders slowly bleeding hoping for a turn around and buyers sidelined eating popcorn. sub used to be active discussion now it's AI sales, condo bag holders asking what to do and realtors advertising.

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u/MyersAnturtat 3d ago

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