More than half of GTA condo investors losing money on properties: Report
BNN Bloomberg
Last year marked the first time that more than half of investors in newly-completed Greater Toronto Area condos were losing money on their rental properties, and authors of the report that reached that conclusion expect the trend to persist.
The research from the Canadian Imperial Bank of Commerce and real estate research firm Urbanation found 48 per cent of leveraged condo investors who bought pre-construction units to rent out were cash flow positive in 2022.
For the majority of investors, rent generated by newly-completed units was lower than mortgage costs, condo fees and property taxes.
"This marks a meaningful shift that may potentially signal that a change in investor behaviour is on the horizon," CIBC's Benjamin Tal and Urbanation's Shaun Hildebrand said in their report released Monday.
