Canadians consider buying a condo purely for investment purposes
May 8, 2008 by Montreal Real Estate Blog
Filed under Canadian Real Estate Trends
Slightly more than one-third of Torontonians (34%) would consider owning a condo solely for investment purposes rather than as their primary residence. 8% have already made this kind of investment.
By comparison, more than half (52%) of Vancouverites say they would buy a condo strictly as an investment, yet only 5% have actually done so. Among Montrealers, only 3% say they already own an investment condo.
Across Canada, condo popularity is steadily increasing. Almost half of urban Canadians (48%) indicate they would consider buying a condo as their primary residence, up from 39% in 2007.
These findings are part of the 2008 TD Canada Trust Condo Poll. Conducted by Angus Reid Strategies between March 20 and 25, the poll looks at the attitudes of urban Canadians towards condo ownership. A total of 1200 online interviews were conducted with Angus Reid Forum panelists who indicated they
are likely to consider purchasing a condominium as a primary residence. The sample consisted of 200 interviews in each of Greater Vancouver, Calgary, the Greater Toronto Area, the Montreal Metropolitan Community, Halifax and Ottawa.
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In Canada investing into real estate has been a common phenomenon since a long time so that`s not so surprising that the increasing popularity of the Toronto condos are so tempting for them. I`m not saying that this investment is without any risk but definitely it can provide greater financial security than anything else. What needs to be considered is the fact that the prices for the condos will reach soon its peak and after that a necessary fall would follow.
I agree.
For the same price that someone could buy a condo, it’s much better to invest on a income property (like a duplex) - even if it isn’t located downtown.
The good thing about investing in condos is the low maintenance time-wise. But their market is quite volatile.
In Montreal, I am not really sure if investing in condos is really a good idea. Looking at the availability of the new condos, buyers have tons of choices. And it makes reselling used condos more difficult in my opinion. Hence, prices of used condos will not go up as much.
Any opinion?