Thinking about buying a condo as an investment? Read this.
Updated: Jan 15, 2020
Many people in Canada have extra funds and opt for the "Just buy a condo" strategy. This may have worked well in the past when prices and supply was lower but now there are other considerations. Condo prices have been climbing drastically, especially in the GTA. Rent prices have been going up as well but definitely not keeping up. What this means is that if you buy a new built condo today the rent will generally not cover all the expenses like mortgage, property taxes, condo maintenance fee, bad debt due to unpaid rent and repairs.... and this assumes you self-manage and don't have a professional property manager that costs extra. At at times the new owner will be negative $500 - $1000+ a month. Now that's not a business... that's stress.
Take a look at this article:
Investing in larger apartments buildings in great areas that are professionally managed carry much less risk and they make you money each month. But wait! How can one afford an entire apartment building? You don't need to. You can buy a small portion of a building. You can have best of both worlds: positive cashflow, no work, and a building that goes up in value each year.
Reach out to us now to learn more about starting your apartment building investing journey.