Owning units in low-rise buildings may be increasingly where it's at for investors looking to mitigate exposure to the condo market.CREW's Jemima Codrington reports.
Video transcript below:
Jemima Codrington: The condo craze has seen investors reaching for new heights, but is it finally time for the low rise to shine. Hi, I’m Jemima Codrington and welcome Investor Insight on Crew TV.
The condo market has been on top of interest for lenders, policy makers and investors alike. So what has at least bought interest in low rise properties.
Michael Plowman, Dan Plowman Realty
Michael Plowman: The interest has shifted from high rise properties to low rise properties, it’s got to be the, a lot of speculation around the condo market and the high rise market kind of softening and the people’s fears on that kind of being a bubble.
Jemima Codrington: From a tenant perspective, low rises can offer that homey, neighbourhood feel that high rises sometimes can’t. But what’s in it for investors?
Matthew Regan, Matthew Regan Team
Matthew Regan: Investing in low rise properties has its, has its benefits as opposed to say a single dwelling condo unit. In a low rise building you may be able to get multiple tenants in there and as an investor you always want to, you know mitigate the risks.
So if you had a tenant that say didn’t pay on time or maybe you had a vacancy in one of the rooms, whether it be a duplex or triplex or in a lot of cases, student housing, you are offsetting the risk there by having multiple tenants paying rent every month.