Real estate developer guarantees rental income for two years

A Toronto real estate developer is offering to guarantee the rental income from its condos for two years.

The Minto Group’s Westside properties will give investors a six per cent yield for 24 months with the developer making up any shortfall in the event of a crash in the Toronto rental market.

Although there is a lot of condo development in the city, and some have expressed concern of a supply glut, demand is still strong.

The Financial Post reports that the Minto deal is dependent on investors putting their property with Minto’s property management contractors and that if rents exceed six per cent that is retained by the developer, although investors can opt out if the rental market surges. 
 

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