11-06-2015, 03:25 PM
(11-06-2015, 02:54 PM)Owen Wrote: What everyone always misses is that the rents are dictated by the mortgages. Lets assume a a $250k condo with no parking - a landlord gets an 80% LTV mortgage - the payment is $930/month (CIBC mort calculator - 1 yr closed at 2.84%) + property taxes + insurance + condo fees. That unit is going to be on the rental market for $1500/month. Pretty sure that's not affordable housing.
In a market with market pricing that has to be competitive, rents cannot be dictated entirely by the mortgages. As one data point, brand new condo rentals in Sage 5 can be had for $1000/month.