That doesn’t mean changes aren’t happening. ‘It’s just way too expensive to get into a single-family home’ ![]() “It’s just regular people just like you, and that I guess you could say got lucky by purchasing a property years ago, got to ride the wave with property appreciation,” he said.īurda added that investors who own units built after 2018 that aren’t subject to rent controls are also able to download the costs of higher mortgages onto their tenants, which can help keep landlords from going into the red. That’s backed up by Statistics Canada data released in May that found the majority of investors in the province were 55 and older, an age bracket that’s usually more financially well-footed than younger counterparts and were able to get into investing in properties earlier. He said the investors he sees already own their own homes and are leveraging equity to buy another property, typically a condo. That’s despite the fact some may be facing higher mortgage payments due to variable-rate mortgages, which are popular with investors because they allow more flexibility. Mortgage broker Victor Tran of Ratesdotca said he sees the condo investor trend as “stable” based on the lack of change he’s seeing with his clients. Though recent interest rate hikes from pandemic historic lows may have rattled some investors, many are holding on. Pauline Lierman, vice-president of market research at Zonda Urban (formerly Urban Analytics), a housing data platform, said while she’s definitely noticed “more stress in the system,” the breaking point hasn’t been hit just yet. That’s paid off for many, but as interest rates climb and projects stall, there are signs of strain.Īnother recent report from land and commercial registry company Teranet found there’s been a notable increase in homeowners selling within one year of buying a property, particularly for condos, since interest rate hikes began last year. “It’s really over the past decade that as housing prices have shot up, many homeowners, typically older and higher-income owners, became increasingly empowered and inclined to leverage their existing housing wealth and their typically higher incomes to bid up and buy out a fast-growing share of the GTA’s housing stock,” he said. That’s slightly below the Ontario figure of 42 per cent of all condos (233,860), according to the data published in February.īut they are a relatively new vehicle for investors, said University of Toronto PhD candidate and housing policy researcher Jeremy Withers. ![]() More than a third of condos in Toronto are owned by investors, according to 2020 data, the most up-to-date figures from Statistics Canada’s Canadian Housing Statistics Program (CHSP), at 36 per cent (145,015).
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