Hold on sell

[Soumojit Sarkar]

I own a condo in BC but live in the US. I had issues with renting out the place earlier, and the current rent doesn't cover even the mortgage interest, let alone other expenses like property tax, insurance etc. The current tenant is about to leave at the end of the month. I'm considering selling the unit instead of finding another tenant. But not sure about it since the market is at a low point right now. At the same time, I fear that a new tenant might stay there for ever and interfere with the sale at a future date. What do you suggest?

[Chad U.]

Quote from @Soumojit Sarkar:

Quote from @Chad U.:

Quote from @Soumojit Sarkar:

I own a condo in BC but live in the US. I had issues with renting out the place earlier, and the current rent doesn't cover even the mortgage interest, let alone other expenses like property tax, insurance etc. The current tenant is about to leave at the end of the month. I'm considering selling the unit instead of finding another tenant. But not sure about it since the market is at a low point right now. At the same time, I fear that a new tenant might stay there for ever and interfere with the sale at a future date. What do you suggest?

What makes you think it's at a low point right now?  Have you researched the macro fundamentals in Canada currently?  

 I haven't done any thorough research and my comment was not about the entire Canadian market, I can notice some correction in my local market anecdotally. I think this might be a low point because the Canadian government is trying to pump the housing market before the election next year by lowering rates, relaxing mortgage insurance conditions etc.

Yes they have been putting in all these measures to prop up the housing market as they see the pending implosion writing on the wall.  Probably the most important policy change made by the Office of the Superintendent of Financial Institutions was the removal of the stress test for those who are renewing their mortgages. If they hadn't removed this there would be a lot more carnage at renewal time in 2025 and 2026.