Real Estate
Montreal Condo Towers Lure Investors, But Many Are Losing Money
- Rent charged doesn’t cover mortgage and expenses for majority
- CMHC finds 15% of resales within 12 months come at a loss
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High-rise condo buildings that are popping up in downtown Montreal have become a magnet for investors, but in many cases they’re a losing proposition, according to a report from the federal housing agency.
While rare a few years ago, high-rise condo buildings of a few hundred units have multiplied in the downtown of Quebec’s largest city, with more construction still being announced. In these large towers, some 57 percent of owners are investors, almost twice the share as in regular condo buildings in the city center, Canada Mortgage & Housing Corp. said Tuesday.