Condo Chicks Comments on New Study Showing 25% of Condo Owners Have Multiple Units as Investments
Condo Chicks comments on a study which found that one in four condo owners also own additional units as investments.
Toronto, Canada – April 19, 2016 /MarketersMedia/ —
Condo Chicks from Stomp Realty Inc. (www.CondoChicks.com), a team of realtors behind some of Toronto’s most prestigious condominium sales, is commenting on a new study which found that a large amount of condo owners also own investment units.
According to a report from the Canada Mortgage and Housing Corporation (CMHC), 25 percent of condo owners have purchased additional units to rent out. The results indicate that many Toronto condo residents are purchasing additional condos as a secondary income stream or as a long-term investment. (D’Amore, R. “Condo property owners in Toronto are also investors, study finds,” CTV News, April 5, 2016; http://toronto.ctvnews.ca/condo-property-owners-in-toronto-are-also-investors-study-finds-1.2846868.)
“When the real estate market is very hot, it’s not uncommon to see people taking advantage of that and investing,” says Erica Smith, founder of Condo Chicks. “These are people who already live in condos, have gone through the process, and understand that they’re getting a very good deal. These results are a good sign that the condo market is doing great.”
The average price of a condo in Toronto is currently over half a million lower than the average price of a detached home, making them popular choices for young professionals and people looking to step into the market. However, the results from this study suggest that instead of working towards purchasing a house, many of these condo owners are doubling down and investing into the condo market.
“Before, a lot of people were using condos as a stepping stone,” says Smith. “That’s really changed now, and a lot of people actually prefer the luxury of condos over houses. As well, people get a much bigger bang for their buck with condos. Their prices are still far below those of houses.”
The study also found that over half of the condo owners expected their units to rise in value, while less than five percent predict a decline in value. One real estate agent suggested that these condo investors could gain hundreds of thousands of dollars in as little as 15 years’ time.
“Toronto has become of the top real estate destinations in North America,” notes Smith. “There are a lot of signs suggesting that the market is only going to continue to get better in the years ahead. Toronto’s population is expected to grow, so condos are likely to remain in high demand.”
With condo prices in Toronto consistently rising, there are currently many opportunities for condo owners to sell their units for profit. However, the study found that over 60 percent of respondents were holding onto their condo investments for more than five years, expecting them to continue rising in value.
“This is a really good sign for people that are considering buying their own condo,” says Smith. “With this many people buying units as investments, prices can rise a little. However, this also means that at their current price, condos are being seen as a ‘steal’ or a bargain.”
In the report on the study from CTV News, one condo investor noted that he began investing after realizing he was spending high amounts of money on his rent. He currently invested in one unit in the Liberty Village area, where condos are on the rise.
“This is a great time for people to get into the condo market,” says Smith. “Whether they ar0e looking for a home or for an investment, condos are really becoming one of the more attractive options in Toronto. Some people are still set on houses, but that’s very quickly beginning to change.”
Condo Chicks from Stomp Realty Inc.is a dedicated team of realtors who are behind some of the most prestigious and prominent condominium sales in the Greater Toronto Area. They take pride in negotiating on their clients’ behalf to represent their best interest. For more information, please call (416)-366-3030 or email sales@condochicks.com.
For more information about us, please visit http://www.condochicks.com/
Contact Info:
Name: Erica Mary Smith, Broker of Record and Co-Founder of Stomp Realty Inc., Brokerage
Organization: Condo Chicks Inc.
Address: 163 Sterling Rd #10 Toronto, Ontario M6K 2B2
Phone: 416-258-2198
Release ID: 111392
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