What are the two most important things to consider when investing in condominiums?
“Don’t invest more than you can afford, and sell at the right time” according to Hunter Milborne of Milborne Real Estate Inc., who has been selling and marketing condominiums in downtown Toronto for more than 30 years.
Real estate is an excellent investment. Investing in downtown Toronto condos can be very rewarding for those who stick to investing fundamentals, do their research, and have an exit strategy. Consider these tips if you’re thinking of investing downtown Toronto condos:
Plan ahead. Are looking to flip your condo quickly? If so, consider investing in pre-construction condos. You can often get discounts if you buy pre-construction which will increase your chance of making a profit when you decide to sell it. If you’re looking for long-term rental property, you have more options. As long as you put down a reasonable down payment (more than the minimum required amount), your renters will be able to pay down your mortgage.
Pick a good location. Take a careful look at various neighbourhoods before choosing to invest in a particular condo. It is best to invest in a neighbourhood where growth and development are taking place. As the neighbourhood grows, the value of your condo could increase.
Condos are a hands-free investment. Because you pay maintenance fees and there is minimal upkeep involved condos can be particularly suited to first-time investors. Maintenance takes care of the amenities and the building so there is very little for you to worry about.
Do your research. Each condo is owned by a condominium corporation and you want to make sure you’re investing into a company that is well managed. Request a status certificate and look at the condos reserve fund. This fund will cover repairs, maintenance, planned, unplanned work and give a good indication of a condo corporation’s health.
If you have questions or want to talk about investing in Toronto real estate, contact Nadine Robbins at 416 878 6860 or at firstname.lastname@example.org