31 Oct Why Condos are better from small investers?
There are many reasons why I consider Condos are better investment option if done in a right way with right professional guiding you through out your investment.
- Leverage: Your deposit is HEAVILY leveraged. You’re only putting down 15-20%, yet your property is appreciating at the full 100%. Suppose you purchase in an area that has shown appreciaton of 10% per year, and you purchase a property for $300,000 where it closes in 4 years time. Provided the $300,000 that you paid was of market value at that time, then your property stands to increase by approx $120,000. On top of that, you have only put down approximately $50,000 – meaning you can potentially get your $50,000 back and then an additional $120,000 in your pocket.
The most successful one of my clients has been with this was a 4 year turnaround project, with $30,000 deposit – they got their $30,000 back and a profit of $125,000. I don’t know of ANY other investment vehicle on the planet that will allow this kind of return.
- Condos are cheaper than houses: Home prices are going out of reach to small invester and getting a detached home is like a distant dream even of ownership forget about the investment.
- Condos are better for renting: There is bigger pool of renters avaialble for condos because of the location proximity of condos as well as the choice to fit singles, couples and small family in affordable range.
- Less Maintanence: A house is a ton if work and requires on-going maintenance in order to keep up its property value. Their are lot of things to worry about like for houses roof, furnace, HVAC, grass cutting, snow shovelling. I do agree, however, that once a condo apt building ages (and in the longer term) then maintenance fees can be relatively expensive. So pick a great new condo builder that manages their properties well, rent it out in your case, and then sell your unit in 5 years.
- Spread the down payment over the years for preconstruction condos.
If you want to have a investment plan and thinking for investment for better future, want to invest in pre-construction condos or would like some information about the toronto, brampton or mississauga real estate market, you can trust me as your real estate expert. Feel free to call me at 416.414.8888 or email at firstname.lastname@example.org
Quote: Plans never fails but we fail to plan.