Real Estate
Condo ‘Catch-22’ Ensnares Toronto Real Estate Investors
- Investors battered by high interest rates and rent pressure
- Biggest test for the condo market since 1991, economist says
The Toronto skyline.
Photographer: James MacDonald/BloombergThis article is for subscribers only.
Shemeer Ahmad is stuck with a condominium investment located near Toronto that’s losing hundreds of dollars every month.
The entrepreneur purchased a two-bedroom apartment in 2019, as rents were rising and real estate seemed like a safe bet. Now, he’s losing around C$830 ($604) every month as high mortgage rates and other costs suck up more than what he receives in rent. He could sell — but he’s worried he would lose tens of thousands of dollars on it.