{"id":23938,"date":"2023-09-13T06:00:00","date_gmt":"2023-09-13T10:00:00","guid":{"rendered":"https:\/\/www.zoocasa.com\/blog\/?p=23938"},"modified":"2024-07-08T11:48:26","modified_gmt":"2024-07-08T15:48:26","slug":"best-canadian-cities-for-condo-investment","status":"publish","type":"post","link":"https:\/\/www.zoocasa.com\/blog\/best-canadian-cities-for-condo-investment\/","title":{"rendered":"The 12 Most Profitable Cities for Canadian Condo Investors"},"content":{"rendered":"\n

The Airbnb era may be ending as an increasing number of cities start enacting policies to limit or crack down on short-term rentals – the latest being New York City which just introduced a law prohibiting rentals of under 30 days. Lack of supply is largely cited as the main driving factor for these laws, with policymakers hoping that these new rules bring more homes back onto the market<\/p>\n\n\n\n

Several Canadian cities already have similar limitations in place for short-term rentals such as Halifax, Montreal, and Toronto. As of September 1, short-term rentals in Halifax<\/a> have restrictions on how units can be rented<\/a> in residential zones and also require basement apartments or backyard suites to be rented for more than 28 days. In the City of Toronto<\/a>, short-term rental properties are not permitted to rent for more than 180 days<\/a> per calendar year and the BC government<\/a> has also indicated that it’s preparing to draft its own laws on short-term rentals. So with all of these restrictions in place or forthcoming, are investment properties still worth it? <\/p>\n\n\n\n

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Despite short-term rentals facing increasing operative challenges, investment properties in several cities are still profitable. This means condo investors may want to consider pivoting to long-term rentals instead.  <\/p>\n\n\n\n

Zoocasa analyzed data for 21 cities across Canada and compared monthly rental prices and monthly mortgage payments for the average condo in each. Additional costs for each were not considered, such as utilities or property taxes. Rental price numbers were sourced from Rentals.ca and Zumper.com, while the monthly mortgage payments were calculated by assuming a 20% down payment at a mortgage rate of 5.24% amortized over 30 years on the average-priced condo. <\/p>\n\n\n\n

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Condos Still a Profitable Investment in Majority of Markets<\/h1>\n\n\n\n

According to Rentals.ca, rent increased annually by 8.9% in August and the average asking rent in Canada reached a record high of $2,078. The average price of a condo in most cities has not grown at the same pace as rent, meaning condo investors can still make a profit in those cities. <\/p>\n\n\n\n

Of the 12 cities with average condo mortgage payments lower than rent, Calgary<\/a> has the largest difference in payments. The average rental payment is $1,920 while the average monthly mortgage payment on a condo is $1,355, meaning a condo investor could potentially earn $565 a month.<\/p>\n\n\n\n

Other Albertan cities like Lethbridge<\/a> and Edmonton<\/a> also have mortgage payments lower than the average rent with $800 and $918 differences in payment respectively. <\/p>\n\n\n\n