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A Saskatoon-based developer is banking on demand for new rental units in the city’s core to continue growing as more people seek to avoid the costs and hassle of owning houses or condominiums.

While multiplehigh-endcondo developments are underway in Nutana and nearby Varsity View, Baydo Development Corp. believes its money is best spent on a new 10-storey apartment tower on Broadway Avenue.

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“You look at a comparable condo, you’re paying property taxes, you’re paying condo fees. Add mortgage interest into that and you’re in the same spot where you are with rent,” said Chris Luczka, Baydo’s vice-president of finance.

“Add that to the fact that the (Canada Mortgage and Housing Corp.) is tightening up how you can qualify for a mortgage, the banks are getting harder to get money from, and it makes a lot more sense to rent.”

Photo by Baydo Development Corp. / Saskatoon

Baydo’s plan to build on the site of the former RBC building emerged in a City of Saskatoon report last fall. On Tuesday, the company unveiled more detailed plans and said construction could begin as soon as this month.