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Calgarians see condos as a source of long-term income: TD Canada Trust 4th Annual Condo Poll
TORONTO, May 5 /CNW/ - Condo buyers in Calgary are among the most likely in Canada to purchase a condo as an investment property (40%). Of those, 41% who bought or would consider buying a condo see a condo as a long-term source of rental income, compared to 35% nationally. While 26% of Canadians plan on eventually moving into their rental condo unit, only 16% of Calgarians plan to do so. These stats are according to the 4th TD Canada Trust Condo Poll which surveyed Canadians who would consider purchasing a condo.
"Calgarians continue to see the value in purchasing a condo as an investment strategy," says Chris Wisniewski, Associate Vice President, Real Estate and Secured Lending, TD Canada Trust. "Affordability and stable monthly expenses can make condos very attractive for both first-time buyers and investors.
Is a condo a good investment?
Calgarians are most likely in the country to think that market conditions have improved for buying a condo as an investment, however the number who feel this way has dropped from 52% in 2009 to 38% in 2010.
"In Calgary, we had started to see the early stages of some price increases in March. In the last 30 days, the number of listings has drastically increased," says Jessy Bilodeau, Mobile Mortgage Specialist, Calgary, TD Canada Trust. "The current increase in supply would suggest that prices may not rise any further as buyers will have more options to choose from."
Why buy a condo?
The TD Canada Trust Condo Poll revealed that lower maintenance needs of condos versus homes is the biggest motivation for Calgarians (42%). Affordability is the second most popular reason for condo purchases (18%). Interestingly, in Vancouver, affordability is the primary reason for condo purchases (45%, up from 35% in 2009) - more than double the city's second place reason to purchase a condo: lower maintenance (21%). Conversely, affordability is not a major reason to purchase a condo in Halifax with only 5% saying price is the deciding factor.
Calgarians choose condos
While Calgarians appreciate the affordability of condos, 61% of those who would consider purchasing or already own a condo say that their plans wouldn't be impacted or that they would still purchase a condo even if they had more money. That figure is highest in Halifax (79%). Additionally, one-third of Calgarians considering a condo would raise a family in one (31%).
Calgarians know what they want to pay
For the fourth year in a row, the majority of Calgarians (82%) say they would spend less than $400,000 for a two bedroom condo. In terms of condo fees, only 6% of respondents would be willing to pay more than $400 per month.
About the 4th TD Canada Trust Condo Poll
The 2010 TD Canada Trust Condo Poll was conducted through interviews with adult Canadians who would consider purchasing a condo as a primary residence. Two hundred interviews were conducted in each of Greater Vancouver, Calgary, Greater Toronto Area, Metropolitan Montreal and Halifax to understand condominium choices among residents in Canada's urban centres. The survey was conducted by Angus Reid Public Opinion, a division of Vision Critical, on April 14 - 20, 2010. The sample size of 1,012 men and women includes 208 in Calgary.
About TD Bank Financial Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Financial Group. TD Bank Financial Group is the sixth largest bank in North America by branches and serves more than 18 million customers in four key businesses operating in a number of locations in key financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Insurance; Wealth Management, including TD Waterhouse and an investment in TD Ameritrade; U.S. Personal and Commercial Banking, including TD Bank, America's Most Convenient Bank; and Wholesale Banking, including TD Securities. TD Bank Financial Group also ranks among the world's leading online financial services firms, with more than 6 million online customers. TD Bank Financial Group had CDN$567 billion in assets on January 31, 2010. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto and New York Stock Exchanges.
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