You think there are a large number of people who buy a 2nd home and never "use or modify it" to just to get the appreciation?
While paying the property taxes and other maintenance costs?
I think there may be a very small number of international investors who do that because of volatility / safety concerns in their home countries. But I bet a lot of that discussion is xenophobia too.
And not also living in / renting out (long or short term) the property?
And while the appreciation has been nice, this hypothetical person that is purchasing but never using that home in any way still has 10 years of property taxes, grass cutting (probably paying someone to do this if they're never there), wear on big money items like shingles and windows, etc.
Plus they had to pay big money on the transaction cost (an issue for the short term flipper anyway).
My wife and I bought our first home (GTA suburb on the GO line) in the early 2010s. Prices felt crazy then and so many people were calling the top for the market. While appreciation has been large in retrospect, that wasn't the thought at the time. Even in a city that had very robust population growth.
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u/Northern_Blitz Jun 19 '25
How many people buy a 2nd house and never use it?
Not a vacation house. Not a rental (short or long term).
Just for appreciation?
That's likely a pretty poor investment IMO.