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Originally Posted by Winsor_Pilates
I think that's a fair position. I don't agree but I understand that too many investors makes purchasing more difficult for home owners.
They however also play an important role in creating supply.
One important element you should consider is how vital investors are for the creation of new homes.
Particularly large condo developments like we see a lot of in Vancouver and Toronto; they can't get built without enough investors buying.
Those developments need about 60% presold to get construction financing and get built; that's not a number feasible by end users alone.
Most end users don't want to wait 3-5 year for the construction of these towers, so investors always make up the required purchasers to get to those construction financing thresholds.
Then when the condos are finished, they become rental supply or get resold to end users (home supply).
Like it or not, investors are vital to the cycle of home supply and rental supply.
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True.
But there's a distinction between investors buying homes that haven't yet been built, vs buying homes that have already been built. The latter is where we seem to run into problems. How many properties are bought strictly to rent out as airbnbs, or to sit empty while they get flipped for a profit? Unfortunately there's no easy way to pin down a clear number, but what is clear is that investors usually do whatever gets them the greatest amount of profit for the least amount of work.