George Guo is showing off one of his son’s Windsor rental properties, a two-bedroom house with a view of the river. The house is up for sale.
It’s small for a Windsor house, but positively roomy compared to much of what’s available on the Toronto rental market. It could definitely use some updating, but it has a large fenced yard, parking and two bathrooms. The floors are a little, well, slanted. But the roof is in good condition.
When Guo hears the exact same detached house in Toronto could sell for over a million dollars, he laughs and laughs and laughs. Guo’s son bought the house three years ago for $21,000 and is listing it for $49,900, standing to more than double his money, on top of the $650 in monthly rental income he’s been earning.
In other words, things have worked out exactly according to plan. In the depths…
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Yes, home prices are getting higher than many can afford which does make renting more attractive.
TORONTO — For the past two decades, developers in Canada’s hottest real estate markets have busily erected shiny new condominium towers while construction of rental buildings has stagnated.
But with the appetite for condos beginning to wane and sky-high home prices leaving home ownership out of reach for many, developers and institutional investors in Toronto and Vancouver are increasingly setting their sights on rental units.
[np_storybar title=”5 reasons why Canada’s housing market won’t crash” link=”http://business.financialpost.com/personal-finance/mortgages-real-estate/plenty-of-plankton-and-four-other-reasons-why-canadas-housing-market-wont-crash”]The head of the country’s largest private mortgage insurer is taking a message to U.S. investors: Red hot housing markets in Toronto and Vancouver aren’t about to plummet — here’s his case.
“It’s a significant shift,” says Shaun Hildebrand, vice-president of condo research firm Urbanation.
The firm says there are eight rental buildings currently under construction and 37 more proposed in the Toronto area, containing a total of more than 11,000 units. That’s a…
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Are buyers being told something about the state of the market for the rentals of Toronto condos?
One of Canada’s largest real estate developers, faced with skittish investors worried about a Toronto condo crash, is offering a guarantee on rental income for two years.
[np_storybar title=”While U.S. home prices soar, is Canada going the other direction?” link=”http://business.financialpost.com/personal-finance/mortgages-real-estate/u-s-housing-recovery-in-full-swing-as-some-wait-for-canadian-crash-we-are-at-completely-opposite-points”]
‘I’d say they are still in the middle innings of their housing recovery as compared to most of Canada which is just treading water’: BMO economist Sal Guatieri
Although this type of deal is not without precedent, it does raise the question of what buyers are ultimately paying for this perk?
The Minto Group is reaching into its bag of condominium treats — incentives have long been part of the industry — to offer investors in its Toronto development called Minto Westside, near the city’s waterfront, a guaranteed six per cent return on their purchase price for 24 months.
“On a $300,000 suite, you would be guaranteed $18,000…
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