Mark
While a record 28,190 new condos sold in 2011, shattering all previous records, they’re expected to come in closer to 17,000 this year, better reflecting long-term trends insists Mark Turcotte.
Rabidoux is highly critical of the “eye-popping pace” of new condo launches with tens of thousands of condos already under construction and the economics making less and less sense for investors.
With new condos now averaging $600 to $700 per square foot in the downtown core — Tridel’s one bedrooms will be about $626 per square foot — it’s becoming increasingly difficult for investors to cover their costs with rents. This year I have seen a big shift in my client portfolio. Mainly Toronto investors considering Barrie for the first time to invest in our community. For mainly the reasons above, and the most important one is cash flowing. I ran a scenario for a client yesterday while showing properties in Barrie and we got talking about home much the GTA and Toronto market has appreciated in the last few years. We ran some numbers on a property that her client recently purchased for $530,000 a three bedroom town home located in Maple. I used basic downpayment requirements of 20% down and put in tax information etc. They were collecting $1800 a month in rental income, the mortgage, taxes and insurance were totalling $2325.00 monthly. That purchase was was negative cash flow every month for a total of $525.00. That was the main reason why my client wanted to look at Barrie for investment reasons. For more information on investing in Barrie, Ontario visit
http://www.newbarrierealestatelistings.com
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