CMHC has surveyed condo owners in Vancouver and Toronto and found that the number of owners with multiple units is growing.
…the total number of investors in the two regions who say they have purchased at least two condo units in addition to their primary residence has risen nearly 13 per cent over the past two years. Nearly a quarter of condo investors told CMHC that they owned least two units, with close to 10 per cent reporting that they owned three or more condos.
Buyers are looking for both rental income and appreciation, with some interesting math:
Among condo investors in Toronto and Vancouver, half told the federal housing agency that they had bought their investment unit for rental income. Of those, 56 per cent expect the value of their condo to go up, while only 8 per cent thought that it would go down. The share of condo investors in Toronto who expected their unit to increase in value fell to 60 from 64 per cent from a year earlier, while the share in Vancouver who expected their condos to increase in value rose to 50 from 41.5 per cent.
A slightly larger share of investors in Vancouver reported paying higher prices for units than in Toronto, although the survey found that the reverse was true of rents, which were higher in Toronto. Nearly 16 per cent of Vancouver landlords reported charging less than $1,000 in rent for their condos compared with fewer than 5 per cent in Toronto. By contrast, nearly 50 per cent of condo landlords in Toronto said they charged more than $1,500 for their units, compared with 33 per cent in Vancouver.
Read the full article over at the Globe and Mail. So how many condos do you own and how many are you thinking of buying this year?
Royal LePage has released a report that forecasts condos values to have a robust future.
Yes, even Vancouver condo values, which have stagnated for years!
Status perceptions, too, have done a 180, according to Chris Simmons, owner/broker, Royal LePage Westside, City Centre and Sunshine Coast. In 1974, buyers kept condo purchases down to a disdainful two to three per cent of the housing market. Today, the idea of houses barely flickers on buyers’ radar. Instead they’re thinking about whether to buy a condo in a bustling or quiet location.
Simmons just placed a professional couple in a $750,000, 1,140-square-foot, two-bedroom-and-den condo near the Olympic Village, “with nice views and well located.”
Hopefully the proud new owners are in a building with heat!
We’re still waiting for the report on the future value of cars from the automobile dealers association, but early rumours have us excited!
Read the full press release news story in the Vancouver Sun.
Canadian Mortgage Trends is saying that changes to HELOC loan to value (LTV) limits are a done deal.
If so this means the maximum HELOC you’ll be able will move from 80% to 65% of the total value of the property.
Read the original link for full details. Many commenters there seem to think this is too big a move.
65% is too much of a leap all at once.
I can’t understand why OSFI doesn’t ratchet the LTV ratio down a little more slowly (i.e., 5% at at a time and sit back to observe the consequences).
As has been noted lately, the previous three sets of mortgage tightening guidelines have been gradually working their way through the credit markets effectively.
You can kill an ant with a hand grenade, but it usually makes a hell of a mess.