The Majority of Toronto Condo Investors Are Cashflow Negative

The majority of investors who purchased pre-construction condos to use as rentals weren’t making money in 2022, the first time such a scenario has occurred. realestate realestatenews Toronto condos preconstruction

High interest rates are spurring a “very important shift” in Toronto’s condo investment market, potentially impacting the already low level of housing supply., the majority of investors who purchased pre-construction condos to use as rentals weren’t making money in 2022, the first time such a scenario has occurred.

The shift in cash flow has been “rather substantial,” with investors earning an average of $63 per month in 2020, and losing an average of $223 per month in 2022. The situation has already worsened, with the average investor coming up short more than $400 per month in Q1 2023. While the expected decline in interest rates, coupled with an anticipated rise in rents, will lighten the impact, it won’t be enough to stop investors’ financial situations from getting worse.

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