[dc_denizen]

Originally Posted by memph

Yeah, well in Chinese real estate I think rental cash flows aren't even close to positive, so I guess it makes sense that Toronto can build expensive condos with relatively low rents (compared to cost to buy). You might get $2000 in rent but $600 in condo fees leaves you with only $1400/month to pay off a $600,000 condo.

yeah...I mean how many US built rental apartments are expected to be cash flow negative for their owners upon completion...meanwhile..

Almost all recently purchased homes in the GTA are cash flow negative

https://www.thehabistat.com/post/alm...-flow-negative

It appears that buyers have become comfortable with having a negative cash flow property. One reason for this is because they expect future price appreciation to exceed their net cash outflows. We started this article by pointing out how home prices increased by over $200,000 in under two years, which would more than make up for the net cash costs. Also, buyers could still be building equity as long as rent prices cover mortgage interest and other costs apart from the principal portion of payments. Based on those two arguments, buyers can justify why they are willing to buy a property that will be cashflow negative. So should we be concerned with the findings of this analysis? Absolutely.