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.
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‘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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