There will be more listings hitting the market as spring typically has the most RE activity. I am skeptical it will be enough to satisfy demand.canabiz wrote: ↑ My realtor guy told me yesterday he expects to see more inventory in the spring and a good source would come from investors with properties around the 15 years old mark and beyond.
Rent is not increasing, due to COVID restrictions and general economic conditions, and you have to start looking at some fairly major expenses (roof, furnace, possibly windows) for properties around that age soon so why not cash out and move on to other endeavours.
Not sure if more investors will offload their rentals than usual. What other endeavors are worth moving towards when every other asset prices are sky high due to the concern that cash is trash? My rental yield is garbage when looking at rent to current price, but so is the return on GIC and PE ratios of stocks. I think most investors including myself would rather hold and pay for the odd furnace or roof replacement here and there rather than trying to find a new vehicle to park their cash/equity.
I was looking at picking up a unit or two in Edmonton with some other posters here since the Edmonton numbers are far better than anything I can hope to find in Ottawa. I considered selling off a townhouse in Barrhaven and trading it for 2 rear lanes in Edmonton, but prospect of paying a brand new bmw amount in capital gains tax killed the idea. I would have so many more ideas if something like 1031 exchange available in the States were available here. Alas we don't, so my investment philosophy/strategy is now reduced to diamond hands and weekly prayer circles for Ottawa RE to go to the moon and beyond.