The price of oil continues to drag down Canada’s economy and our loonie is teetering at historically low levels, yet Canadians still can’t stop talking about real estate.
So, I thought it only appropriate to dig up some not-so-old real estate facts. How about some statistics on Toronto and Vancouver condos? The information comes from the August 2014 Canada Mortgage and Housing Corporation study “Toronto/Vancouver Condominium Owner’s Report”—a survey of just under 42,500 condo-households located in Canada’s two largest cities. Here’s 14 of the most-interesting tidbits in the report:
How many condo owners are actually condo investors?
#1. Among the 42,426 Toronto and Vancouver condo-households surveyed (between August and September 2013), 82.9% owned and lived in one condo, while 17.1% owned and lived in one condo and owned at least one additional condo unit.
#2. Of the 17.1% that own investment condos, three-quarters own only one secondary condo unit, while 15.7% own two investment units and 9.8% own three or more investment condos in either Toronto or Vancouver.
How long will they keep the investment condos?
#3. Of those that did purchase an investment condo, 58.4% expected to keep this investment suite for five years or more, while 11.9% said they planned to sell within a year of purchase.
#4.The largest share of condo investors (46.3%) purchased their last unit six or more years prior to August 2013. Just over 16% purchased their investment unit in 2008 or 2009, while 33.1% purchased their last investment unit in 2010 or later.
How many investment condos are rented out?
#5. About half (or 51.2%) of the 17.1% of those condo investors rent out their investment unit. Roughly a third (36.8%) let family occupy the secondary condo purchase. Only a small percentage (6.9%) left their investment condos vacant.
How many of these condo investors carry mortgages?
#6. Just under half (42.1%) of Toronto and Vancouver condo owners surveyed did not have a mortgage on their last condo purchase.
#7. Among those condo investors that did hold a mortgage, 27.2% opted for a mortgage amortized for less than 25 years; 39.8% chose an amortization of 25 years, while only 13.1% selected a mortgage with an amortization that was greater than 25 years.
How much down payment did these condo investors put down?
#8. 47.1% of condo investors made a down payment of more than 20%, while 20.5% put down less than 20% at the time of purchase.
#9. The survey showed that 17.5% didn’t need to make a down payment, as they didn’t carry a mortgage on the investment condo.
What appreciation expectations do these condo owners have?
#10. Almost half (47.9%) of condo investors expected the value of their unit to increase in the next year (August 2013 to August 2014). However, 42.2% expected the condo value to remain the same, while 5.4% expected their condo investment to depreciate.
Some interesting additional facts…
#11. More than two-thirds (88.1%) of the condo owners did not plan on purchasing additional condo units in 2013 and 2014.
#12. Only 2.8% of those investors surveyed said their investment unit was either in pre-construction or construction phase.
#13. Just over 25% of condo investors surveyed purchased their investment condo in the pre-sale phase of a project (i.e. before the start of construction phase).
#14. The CMHC survey did not include investors that buy and hold using corporations. Nor did it include domestic or foreign investors that own a Toronto or Vancouver condo but do not reside in either municipality.
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