Real estate investors lose out

Author

Jay Lutz
May 30, 2023

Sponsored by Gatekeeper Systems

Condo investors are losing money hand over fist

According to a recent joint report by market research firm Urbanation and CIBC Capital Markets, rising interest rates are pushing the Greater Toronto Area’s new construction condo market to a tipping point. For the first time, more than half of investors who purchased pre-construction flats as rental properties reportedly lost money last year.

Three-quarters of condo owners have mortgages on their properties. Those buyers made an average monthly profit of $63 in 2020. Last year, that profit had transformed into a $223 loss on average.

According to the report, the situation has worsened this year, with an average loss of $400 in the first quarter. Around a third of investors were losing at least $400 a month, while 14% of investors were losing $1,000 or more per month.

You can read more on the matter here.

Gatekeeper is a leading provider of intelligent video and data solutions designed to provide a safer transportation environment for children, passengers, and public safety personnel on multiple transportation modes. The Company uses AI, video analytics, thermal cameras, and mobile data collectors to inter-connect public transit assets as part of intelligent transportation systems in a Smart City ecosystem.

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FULL DISCLOSURE: Gatekeeper Systems is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Gatekeeper Systems. The author has been compensated to cover Gatekeeper Systems on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.