12-13-2016, 11:32 AM
Those national numbers of foreign resident buyers probably do not reflect the case in Kitchener: they are probably heavily skewed by the major markets.
The Kitchener Post article that rangersfan linked to seemed to suggest that 25% of buyers from out of market is not a big number, but it is extremely significant if true.
As for the number of units being sold for use as rental properties, I mostly hear those figures in relation to condominium units. But, bringing it back to Kitchener, I know of a number of examples in my and nearby neighbourhoods of people buying single-family homes in recent years in order to rent them out. These seem generally to be locals, and back-of-the-envelope math suggests these could not be cash flow positive based on their rents. That suggests speculation, and a bubble. And you’re right, Viewfromthe42, locals will have only themselves if that turns out to be the case.
The Kitchener Post article that rangersfan linked to seemed to suggest that 25% of buyers from out of market is not a big number, but it is extremely significant if true.
As for the number of units being sold for use as rental properties, I mostly hear those figures in relation to condominium units. But, bringing it back to Kitchener, I know of a number of examples in my and nearby neighbourhoods of people buying single-family homes in recent years in order to rent them out. These seem generally to be locals, and back-of-the-envelope math suggests these could not be cash flow positive based on their rents. That suggests speculation, and a bubble. And you’re right, Viewfromthe42, locals will have only themselves if that turns out to be the case.