More than half of GTA condo investors losing money on properties: report
A new report says for the first time ever, more than half of newly-completed condo investors in the Greater Toronto Area were losing money on their rental properties last year — and its authors expect the trend to persist.
The research from the Canadian Imperial Bank of Commerce and real estate research firm Urbanation says 48 per cent of leveraged condo investors who bought pre-construction units to rent out were cash flow positive in 2022.
- Download our app to get local alerts on your device
- Get the latest local updates right to your inbox
For the majority of investors, rent generated by newly-completed units was lower than mortgage costs, condo fees and property taxes.
CIBC and Urbanation feel this trend marks a "meaningful shift" that may signal a change in investor behaviour is on its way.
They say they expect the shift toward negative cash flow is expected to worsen in the years ahead as increasingly expensive new condos presold to investors in the past few years reach completion.
They add a reduction in interest rates and further growth in rents will lighten the impact on investors in the years ahead, but won’t be enough to stop their financial situations from getting worse.
This report by The Canadian Press was first published May 29, 2023.
CTVNews.ca Top Stories
'They needed people inside Air Canada:' Police announce arrests in Pearson gold heist
Police say one former and one current employee of Air Canada are among the nine suspects that are facing charges in connection with the gold heist at Pearson International Airport last year.
House admonishes ArriveCan contractor in rare parliamentary show of power
MPs enacted an extraordinary, rarely used parliamentary power on Wednesday, summonsing an ArriveCan contractor to appear before the House of Commons where he was admonished publicly and forced to provide answers to the questions MPs said he'd previously evaded.
Leafs star Auston Matthews finishes season with 69 goals
Auston Matthews won't be joining the NHL's 70-goal club this season.
Trump lawyers say Stormy Daniels refused subpoena outside a Brooklyn bar, papers left 'at her feet'
Donald Trump's legal team says it tried serving Stormy Daniels a subpoena as she arrived for an event at a bar in Brooklyn last month, but the porn actor, who is expected to be a witness at the former president's criminal trial, refused to take it and walked away.
Why drivers in Eastern Canada could see big gas price spikes, and other Canadians won't
Drivers in Eastern Canada face a big increase in gas prices because of various factors, especially the higher cost of the summer blend, industry analysts say.
Doug Ford calls on Ontario Speaker to reverse Queen's Park keffiyeh ban
Ontario Premier Doug Ford is calling on Speaker Ted Arnott to reverse a ban on keffiyehs at Queen's Park, describing the move as “needlessly” divisive.
'A living nightmare': Winnipeg woman sentenced following campaign of harassment against man after online date
A Winnipeg woman was sentenced to house arrest after a single date with a man she met online culminated in her harassing him for years, and spurred false allegations which resulted in the innocent man being arrested three times.
Woman who pressured boyfriend to kill his ex in 2000s granted absences from prison
A woman who pressured her boyfriend into killing his teenage ex more than a decade ago will be allowed to leave prison for weeks at a time.
Customers disappointed after email listing $60K Tim Hortons prize sent in error
Several Tim Horton’s customers are feeling great disappointment after being told by the company that an email stating they won a boat worth nearly $60,000 was sent in error.