Although coronavirus is affecting everyone, landlords who are still in debt on their rental properties might be among the most at risk for financial hardship because their tenants are paying less rent. Some provinces have already made plans to deal with this issue, but banks are now perceiving real estate investments as a riskier proposition. This means that landlords applying for mortgage assistance may not receive any, and real estate as a whole is not looking good.
- Landlords who are already in debt on their rental properties are facing severe risk because of coronavirus.
- Landlords might be in the situation where their tenants can’t pay rent because they’ve lost their jobs.
- Because of coronavirus, residential real estate is being seen as a riskier prospect now.
“And while some provinces have taken concrete policy steps towards addressing this danger, residential real estate has already become a riskier asset class as a whole, University of British Columbia professor Tsur Somerville said.”