Leasing Condo Suites Unprofitable

This article discusses a study by StreetEasy that found leasing out newly purchased condo suites to be an unprofitable endeavor. The median return on investment for condos leased in Q2 2017 was 2.5%, comparable to GICs that earn less than the rate of inflation. The study does not account for mortgage and closing costs or price appreciation. The article also notes that the costs of owning and leasing a condo, including condo fees, property taxes, repairs, and tenant acquisition costs, have increased and made it less attractive to buy and lease out a condo. The study was conducted in New York City, which has seen a construction boom and a perceived strength of real estate similar to Toronto.