Among that number is Joanna Lang (pictured top), managing partner at Outline Financial, who told Canadian Mortgage Professional she sees the sector riding out the current turbulence and returning to better health eventually – even though it could take a few years.
“I think the mood in general is that clients feel the Toronto condo market is going to turn around. I’m not saying this year or next year,” she said. “Long term, end users want to close on the deals if they can afford to carry the property, which is a little bit of a challenge considering that rents have come down as well.
“But they generally will figure out the way to make it work because they believe that long-term, the values will rebound.”
Solutions ready for some buyers, thin on the ground for others
For investors who’ve been left in the lurch by rental properties suddenly turning cashflow-negative, pulling out equity from other properties they own to make up the difference – if they’re able to – is often a way of managing that payment shock, according to Lang.
But others with a smaller portfolio who can’t rely on tapping into other rental properties are still facing a conundrum, as are buyers who purchased a preconstruction condo with the intention of selling for a profit on assignment.