“[Investors] are kind of rushed to make a decision,” says Celine Xu, an agent with Re/Max Realtron. “That’s why we have several offers for some properties.”
Typical investors and buyers are now revisiting the properties they once overlooked, especially detached single-family homes in cities like Toronto
Particularly, homes that require a complete gut – the same ones that investors and property flippers tended to scoop up at a discount – are now more attractive to all buyers because of the severe shortage of listings in many of Canada’s larger cities.
“All I can do is show them what’s available right now,” says Casey Ragan, an agent with Re/Max Hallmark. “There are so many end users that it’s hard to make money.
"Properties are selling for $100,000 more than they should be. And the end user ends up paying more than the investor who is looking for a return.”
The key, says Ragan, is educating investors about the changing market.
“You have to let them know how [the market] is, this is what you’re getting into,” he says. “You have to prepare them. If you don’t, the process is stressful.”
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
Investment Hot Spots:
Long Lake, Saint-Luc-de-Vincennes, Saint-Herménégilde, Selkirk, Burritts Rapids
The market frenzy caused by a shortage in listings has extended to many investors, who find themselves hard-pressed to purchase a property at a decent price – a task that’s set to become even more challenging following the Bank of Canada’s surprising decision to lower interest rates.