Investors & # 39; down?
The Canadian Press –
Dec 4, 2018 / 7:42 am | Story:
Photo: The Canadian Press
The skyline & # 39; Montreal as seen from Mount Royal.
A report by the Canada Mortgage and Housing Corp. suggests a majority of & # 39; rent investors who bought properties in & # 39; & # 39 great building; condominium in & # 39; & # 39 in high location, downtown Montreal are not collect enough rent to recoup their operating costs.
The national housing agency estimates that investors have made a down payment & # 39; 20 percent on their properties are spending more on payments & # 39; mortgages, fees & # 39; kondozzjoni and school property taxes and the amount they receive in rental income.
The report suggests owners & # 39; 75 percent of the 375 condominiums rented examined by the property listing service & # 39; Quebec, Centris, experienced flow & # 39; negative cash. He found that in & # 39; this scenario, average operating expenses, exceeded the rent at $ 385 a month.
CMHC noted that the findings were theoretical and may vary due to a number of & # 39; other factors were not considered for the report, including whether the owners pay a down payment greater than 20 percent or if the unit was purchased with cash.
The Economist CMHC Francis Cortellino, author of the report, says the ultimate hope for these investors is that their costs are recovered in the resale of the condo if market conditions continue to tighten and favor sellers.
Last month, the Great Housing Board Buildings of & # 39; Montreal reported sales of condo was & # 39; 22 percent year on year, with the average price for a condo to four & # 39; per cent to $ 265,000.
The CMHC report also found that the proportion of & # 39; investors (56.5 percent) in very large apartments & # 39; condominium in & # 39; downtown Montreal, which agency was categorized as rebuilding & # 39; 300 units or more, was higher than in & # 39; another building & # 39; condominium (30 per cent).
Did this conclusion by looked at the property value accounting, and whether they were sent to existing units condomini or to another address.
Resale of units in new buildings within a year was also higher (7.2%) than in the old building (1.8 percent). While the percentage of sales resulting in & # 39; loss was also increased in most new buildings (15 percent) than in the old building (five percent).