In a recent CREW poll, 79% of investors said that they don’t feel that flipping makes sense in the current market.
The results come on the heels of significant worries from policy makers and industry experts regarding the state of the condo market, especially in key urban markets such as Vancouver, Ottawa, Montreal and Toronto. The concerns felt by higher up have been echoed by developers, many of whom are pumping the breaks on new developments, making many investors cautious about quick flips.
But as sales for condos across the GTA slow, the vacancy rate continues to improve. The vacancy rate for apartment buildings is currently at 1.7 per cent, it’s lowest in almost a decade. For rental condos, the rate is even lower at 1.2 per cent, according to the CMHC.
Despite the number of condos going up (there was a six per cent increase in available condo inventory year over year), the impressive vacancy rates continue. And investors can healthy steady cash-flow with condos over purpose-built apartments; according to the CMHC report, condo rents are about 40 per cent higher than apartment rents.
Have your say: would you buy and hold or flip a condo in the current climate?
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