Condo Investing Basics

Quick Condo Tutorial:

Theres been a lot of info of late around condos in the media

Why? Probably has to do with the fact that 6 of 10 solds are condos right now in GTA

The appetite for condos is huge!

And thats a good thing as theres no shortage of supply.

Who is buying? Investors are playing a big role.

Foreign investors to be clear.

Are condos a good investment?

The idea of buying a resale condo and renting it out often doesnt better your cash flow. It takes care of much of the expenses until you hopefully see capital appreciation and sell. But you need to hope that there arent too many like minded investors as youll lose some of your competitive advantage in a strong market should a number of units find their way to MLS.

New condos may be a better choice for an investor. Here you do need patience and the initial downpayment of 25 percent. All goes well if you buy off spec and the units appreciate yr over yr for the 3 yrs until the condo is registered then youre in a good position. Again, you wont be the only guy to have this idea so hopefully the mls isnt flooded with listings.

What some investors will do is beat the lunch crowd and look to sell paper before registration to lessen the competition.

Though theres no shortage of this manouver either. Have your realtor email you the supply in many new condos of those owners looking to assign their offers prior to closing.

Btw..a crude measure for rental rates can be 2.10-2.30 per sq ft depending on a number of factors.

So do your homework and understand the market and the workings of the deal. Nothing is a slam dunk but ______ and ______.

Cheers,
See my website @ http://www.TheSmithsBuyAHouse.com