Are condos a good investment? What are the benefits of buying a condo? Are there any advantages of living in a condo as opposed to a house? These are some of the most commonly asked questions by people looking to put their money in condos. With this article, we hope you will reach the answers to most of these questions.
Superficially, the world of condo investing looks perfect. All you have to do is pay a small deposit, the value increases every year, someone else is paying the mortgage and you make money like it’s growing on trees. But what everyone fails to mention is the hassle of finding tenants and maintaining a positive cash flow. Fear not though, because we at MKT list will walk you through the ins and outs of getting the most out of your investment.
There are many benefits to buying a condo and the advantages of living in one, especially if you’re investing for the first time, such as low maintenance, limited risk, affordability, and various amenities. Certain things to keep in mind when investing in condominiums are:
Location – When it comes to best condo investment opportunities in Toronto, location is key. Certain areas offer condos at cheaper rates so be sure to do a thorough search before deciding where to invest.
Bedrooms – 2 bedroom condos are generally more in demand among aspiring tenants. Students usually look for condos with 2 bedrooms or more because one student alone can’t afford a condo.
Parking – Parking is a desirable factor when it comes to attracting renters. It is commonly purchased in addition to the unit.
Monthly Fees – In new buildings, the monthly condo fees normally doubles after 3rd years have passed since incorporation.
Builder – When purchasing from a builder you have to abide by certain purchase agreements. Some builders can be very hard to deal with and have nonsensical purchase agreements so pick your builder wisely.
Increasing Cash Flow
Increased Condo Fees – Additional fees associated with condo ownership increase with time so plan accordingly.
Up the Rent - You are allowed to increase your rent once every 12 months. Don’t increase it too much though otherwise, you might find yourself with a tenantless condo.
Parking Spaces – If your condo came with a parking space, use it wisely and rent it separately to increase your money output.
Keys – A simple way to save both time and money is a refundable key deposit which stops tenants from leaving with many dollars’ worth of keys when they move out.
Perhaps the most troublesome part of investing in a condo unit is finding tenants because you have to compete with a lot of other units, sometimes in the same building. In order to win this competition, you have to make sure your unit is a cut above the rest. You can use paid advertising and other methods to find tenants such as the aforementioned MKTLIST RWE.
Maintenance issues always arise over time. The best way to save money and time when it comes to maintenance is hiring a vendor. Hiring a vendor will save you from the stress of unnecessary calls from renters and wasting valuable time taking care of their every request. Also, repairing a broken appliance is more money-friendly than getting your tenant a new one. If they insist on a new appliance, opt for a second hand one to save money.
We’re pretty sure that by now you have an answer to whether condos are a good investment or not. For information on the best condos to invest in Toronto and other real estates, keep visiting
Recently Added PropertiesView All