Station Park | 18, 28, 36, 40, 50 fl | U/C

[MidTowner]

There is a lot of risk inherent to real estate. It’s been going up for so long in Canada (almost a generation) that a lot of people seem to forget it goes down sometimes. The average Canadian moves something like every five or seven years, so there’s appreciable risk of having to sell into a down market (or being bogged down with a very illiquid asset). I think Canadians of working age seriously understate the risk that they will have to move to a different job market (for negative or positive reasons).

Tom, to your point about cash flow, it seems to me that many properties on the market now could not be cash flow positive using any reasonable assumptions. Many landlords are subsidizing their tenants on the speculation that prices will continue to rise.