A new study by the Canada Mortgage and Housing Corporation found that a quarter of Toronto condo owners are also investors who have purchased additional units to rent out.
According to the study, of the 25 per cent of condo owners who own a secondary unit, 10 per cent own three or more income properties.
Whether the property will increase in value depends on when investors are ready to sell.
Tyler Pyne, a real estate agent in Toronto, told CTV Toronto that the longer an owner waits to sell the property, the higher the cash out.
“In 15 to 20 years, they’re going to be sitting there with several hundred thousand dollars in their bank account waiting for them, ready to sell,’ Pyne said.
The study found that 56 per cent of current Toronto condo investors expect an increase in property value while 35 per cent don’t anticipate much growth.
Few are concerned about a property value decrease, making up 5 per cent.
Brendan Peters owns a condo in the Liberty Village area of Toronto, one of the city’s fastest growing condo communities. Peters has rented units in the area for several years before he decided to invest in one himself.
“After a while, I started thinking, ‘why am I paying someone when I can buy it myself?’” he told CTV Toronto.
“I get clients calling me up because they want to get someone else to pay off their mortgage,” Pyne said, “You get someone looking for a long-term gain.”
But, according to the study, a majority of investors aren’t ready to sell quite yet.
The study found that 60 per cent said they will retain their rental property for at least five more years.
With files from Natalie Johnson.
