Investing in Condos
Date Added: December 22, 2008 07:41:55 AM
Investing in condos is a very hot and profitable option for many investors today. A condo serves as an asset which can be sold anytime in the future, preferably when prices escalate so that a respectable profit is gained. And seeing the trend in recent years, prices will continue to rise into the future. Further, buyers tend to "flip" a condo, making modifications to the unit to raise its value.
But buying to sell is not the only way to make a profit; condos can also be purchased to earn rental income. In this case, the mortgage payment should be less than what is charged for rent. Hence the amount you set for rent should cover the costs for electricity, gas, etc. But before deciding to purchase a unit for renting purposes, always ask if renting the unit is allowed, as some do not allow this. Many condos are developed right near corporate offices and workplaces. Hence these condos are great options for business people. The proximity of the condo to the workplace makes life easier. This way people can save on their overall commuting time as well as on transportation costs such as gas. Incidentally, the majority of condo units are designed for singles or child-less couples. But condos aren't just located in the downtown core. Many can be also be found in the suburbs. Away from the hustle and bustle of the city, buyers are often elderly couples who want to experience a peaceful post retirement life.
So why are foreign investors getting so interested in condo projects in Toronto? First off, the economy of the city (and country as a whole) has increased significantly over the last few years. Toronto condo prices have increased by 15.7% in the last year. Canadian lending practices are not as restrictive as they used to be. The prices of condos have escalated steadily over the last few years and they are predicted to escalate further. Hence foreign investors are investing in condo developments so that they can be sold after the condominium building has been constructed.
Every year more than 50,000 people move into the city as permanent residents and condos prove to be a good rental or buying option for them because they tend to be cheaper than houses. The best part is that condos are low maintenance and they offer a number of amenities not found elsewhere. They are typically built near major transportation routes. |
|
|
