Wednesday, October 19, 2011

Toronto Real Estate

According to the Globe and Mail, 60% of new condo buyers in Toronto are investors.  The game is the same everywhere, you invest in a condo project, with progress payments (initially very low) on a $500k condo the initial payment may be $50k, the idea, for the investors is to hold on to the property until its close to completion, and then "flip it" to a owner-occupier, usually generating a very nice yield on the $50k investment (maybe a doubling over 24 months), not bad in a rising market.

The problem is obvious, with so many condo projects being built  there is a finite number of "real owner-occupiers.  The result, those early buyer start by dumping their project, with the usual consequences on the market at large.


Post a Comment

Subscribe to Post Comments [Atom]

Links to this post:

Create a Link

<< Home