Those So-Called Experts by Darrin DeRoches February 17 - 23, 2011 I was reading an article about a home in Toronto that sold for 17.5 million dollars.  Sounds like a pretty high price but it did not set any records; the interesting part of it was the purchaser was referred to as a “Mystery European.”  This purchaser did not want to be named so maybe it is somebody really important, maybe royalty? What’s the big deal?     The big deal is that foreigners are investing in our Canadian market. This European looked at buying a comparable castle in Boston but the stable Canadian market was one of the deciding factors. That is a big deal. The article went on asking all the big brokers their opinions about this. There are no statistics jumping around about this but our stable real estate market has garnered attention worldwide.  Sometimes it is hard to look in your own backyard and realize how good you have it until you start to look around and realize how others perceive your yard.     The Toronto market has gained 5.3 percent since 2000 while the U.S market has fell as much as 50 percent.  I reported last week  that the Hamilton market was 6.8 percent where as it was more like a six percent increase since 2000 – sorry, slip of the keys.  The reality that our market is strong and has weathered the storm is the reason foreign investment is looking at the Canadian real estate market as a “safe haven.”  This mystery investor has decided our market will stay stable enough to invest his money of 17.5 million dollars.  So if he were to believe the hacks who are reporting a 25 percent correction in the near future – he is risking about 4 plus million on this? He should have bought in Boston where the market dropped up to 50 percent and got a deal which will rise in the near future.     The so–called experts or as I refer to as ‘hacks’ keep using the terms ‘up to’ or ‘near future’ to explain their eye catching big percentages.  The reality is that the real estate market will be making an adjustment by the end of the year.  The market has been so strong for so long it naturally has to level out or adjust sometime. This adjustment will not be 25 percent but even it is was this adjustment would only level out the profit you had made on investment you made.  Unless you sell a home you just bought for full price the moment the market adjusts – you will not lose any money.  The key to this is to ride out the adjustment or realize you are still making money on your small down payment – just not as much as you would have liked. Foreigners are investing in our beautiful country, did miss the boat! V Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.