17% of condo owners in Toronto, Vancouver bought for investment

Investment is a process in which "money starts making money". You have some money then put in Real Estate and you get a big return after few years.

Almost one out of five condominium owners in Toronto and Vancouver have bought another unit in order to use as an investment, according to a new Canada Mortgage and Housing Corporation (CMHC) survey.

The survey doesn’t include Canadian and foreign investors who own units in Toronto and Vancouver but to do not live in either of those cities. Dugan says CMHC hopes to include these investors in the next survey, which is tentatively slated for this fall.

"We have tried to look at foreign ownership over the years," said Dugan. "It's a very difficult group because many of them don't live in Canada full time. We have tried to use land registry data, but that doesn't give you an accurate picture because some of them may hire a property manager or lawyer to report for them."

As far as the current survey is concerned, Dugan said the results show that a low percentage of condos are being rented out and that lines up with the CMHC's fall survey of apartment rentals.

"It's interesting to find out many people seem to want to hold for a longer term on their investment, only 11 per cent of those condo investors want to sell within a year of buying the unit."

Condo sales remain hot in both cities. Recent data from RealNet Canada indicated new condo sales in Toronto went up 94 per cent in June compared to a year before.

 Rick Chauhan

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Rick Chauhan

Rick Chauhan

REALTORĀ®
CENTURY 21 President Realty Inc., Brokerage*
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