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Banks have no clue on micro-condo market, argues leading agent

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Guest | 30 Jan 2014, 12:33 AM Agree 0

The Big Five do not know what they doing when it comes to the micro-condo market. That is the view of outspoken developer and real estate agent, Brad J. Lamb, as he slates the lenders for not tapping into this growing and lucrative market.
“They are greatly mistaken and poorly informed of where they should be putting their money,” he tells CREW. ““The funny thing is that they are prepared to lend money on the products that take the longest to sell and hardest to sell yet the properties that rent instantaneously and sell instantaneously are the ones that the most people can afford.”
Lamb says the demand for micro-condos – the units that range between 350 and 400 sq. ft. – is “unlimited” in downtown urban centres, with young professionals craving these compact spaces. “If I put such a property to rent, averaging between $1,200 and $1,500 a month, it is rented in two to three days with a line of people waiting for it.”
The full interview with Brad J. Lamb will be in the April issue of Canadian Real Estate Wealth.
**Brad J. Lamb is the keynote speaker at the forthcoming Toronto Investor Forum, taking place on March 22 and 23 in the International Centre.  Check out toronto.theinvestorforum.ca for further information.
  • Armando Chu | 30 Jan 2014, 02:04 PM Agree 0
    Brad is 100% correct on this subject. Bankers need to smart up not to miss this market. I just wish some other financial institution would pick up this untapped market and grow with it.
  • louis S | 30 Jan 2014, 02:44 PM Agree 0
    Well let's be serious here, the 5 large banks do not get their large profits year after year, by being stupid. Mr. Lamb may be very capable of understanding the real estate market in his market, but let.s give credit were credit is due, the bank know their business also.
  • Michael Yosher | 05 Feb 2014, 09:24 AM Agree 0
    I agree with you Brad. Banks are concerned with marketability, and those units do sell and rent fast.

    However, issue is that this applies only to downtown toronto.....not North York, Vaughan, Mississauga......and the banks, specifically the Big 5 would need to apply a rule that is fairly broad...(ie. they can't say we'll do below 500 sq ft only south of eglinton).
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