At a time when the Canadian Real Estate has never been less affordable, Royal York Property Management offers financial aid to property owners who are not able to make ends meet.
Canadian real estate has never been less affordable, according to Canada’s largest bank, RBC. Despite falling home prices, affordability is still eroding due to rising interest rates. Though banks have said that they see home prices falling further to adjust to higher rates, affordability has not improved.
Canadian housing affordability has reached the worst point it’s ever been. A household now requires 60% of its income just to service a mortgage in Q2 2022. It surpasses the previous record of 57% hit in the 90s, and that’s just at the national level. The bank warned it’s even worse in Canada’s largest cities.
One of the largest leasing and property management companies in Canada, Royal York Property Management, calculates rental income for an average one-bedroom condo in Toronto to be approximately $2,145/month. By comparison, the average “caring cost” for a property owner is reckoned to be $2,500, including mortgage.
Starting at $69 a month, Royal York Property Management will fund the shortfall for up to $500 for as long as they manage the property.
How does it work? You send all your monthly expenses to the Accounting Department of Royal York Property Management and after auditing everything accordingly, Royal York will fund you for the shortfall and you see the amount as income to your statement.
This scheme has been around for a couple of months and Mr. Levinson, the President of Royal York Property Management, reports that the feedback from thousands of clients has been “wholly positive”.