Over 1,400 units were leased in the month of August, matching the record set in the previous month. Expect these numbers to decline, as September usually marks the peak rental period when activity begins to whine down.
As a side-note, this same burgeoning downtown-market, only produced 550 condo sales in the month of August.
Investors who have purchased pre-construction condos are increasingly choosing to lease out their units rather than sell.
This stands in sharp contrast to the mainstream media viewpoint suggesting most “condo-flipping” as the more dominant market activity.
Purchasers who are not owner-occupiers having to come up with hefty HST Rebate funds prior to closing on their purchase.
End users on the other hand do not have to pay this upfront as rebates are assigned to the developer.
If an investor opts instead to lease their unit for a minimum of one year, they can apply to receive the Rebate back from the federal government.
Putting things into perspective, a $300,000 condo unit works out to approximately $25,000 in HST that’s due before one can close on a purchase. A hefty sum. Surprisingly, very few investors are aware of this important bit of detail.
For tenants, rental rates continue to creep up despite the increasing supply of rental condos, the vacancy rate still hovers below 2%.
What can you get?
- A studio now rents for over $1400 per month. A one bedroom plus den without parking will now rent for just over $1800.
- The top end of the one bedroom market with parking is now $2000 per month. In September 57% of the one bedroom units were rented without parking.
- The two bedroom market has an entry point over $2,300 without parking. A two bedroom with den and parking now averages $2,900 per month. Conversely only 16% of two bedroom units were rented without parking. The highest two bedroom rental in August was $10,000 per month.