A new survey by the federal government’s Canada Mortgage and Housing Corporation reveals that nearly one in five condominium owners in Vancouver and Toronto purchased another unit for investment purposes.
The crown corporation surveyed 42,426 households in both cities and found that of those who own at least one condominium, 17.1 per cent owned at least two units – one for their primary residence and at least one secondary condominium unit for long-term investment. A larger share of of investors in Toronto (30.2%) purchased at least one secondary unit as a pre-sale than in Vancouver (19.5%).
The remaining 82.9 per cent of those surveyed own their condominium and reside in it.
About half of condominium investors in Toronto and Vancouver rent out their last purchased unit, while one third have their last unit occupied by family.
Of those identified as investors, 58.4 per cent expected to keep their secondary unit for more than five years. 11.9 per cent also reported that they originally bought their last secondary unit with the intention of reselling it for a profit within a year of purchase.
There are also some differences between condominium investor attitudes in both cities. Torontonians had higher expectations (56.1%) of an increase in valuation of the secondary unit over the next year compared to Vancouverites (36.6%).
Furthermore, more Torontonians anticipate to retain their secondary unit over the long-term (5+ years) while greater numbers of Vancouverites plan on holding their secondary unit over the short-term (0-5 years).
A higher percentage of Torontonian condominium investors also anticipate to purchase additional secondary units over the next year.
Featured Image: Vancouver condos via Shutterstock