New Condo Investors in Toronto Face Growing Risk that Rent Won’t Cover Expenses

This is an interesting article on the carrying costs of residential condominiums.  The underlying message is that carrying costs including realty taxes, maintenance fees and debt service are now higher for investors as property value and interest rate increases are rising faster than rental rates.

There are many other investment vehicles available for Real Estate investors including mixed use and multi-residential properties that offer better returns.  Although these types of investment require a little more management, I expect they won’t be subject to the same risk as the resiendital condo market.
Read the CBC article here, or here for Globe and Mail Subscribers.