Buying a condo for investment can yield excellent returns if you know what things to consider and how to do it the right way. As with any investment, there are a variety of factors that influence the outcome, the market condition and location being two of the top determinants. Read on to learn how to choose the right one when looking at new condo developments for investment purposes.
Why a New Condo is Perfect for New Real Estate Investors
As a beginner, you may not be well-versed in the ins and outs of the real estate market. However, investing in a new luxury condo is a relatively safe bet that can help you get better returns quickly. This is because of the following reasons:
- With an increase in urbanization, the demand for condominiums has increased.
- The renter community’s preferences are shifting towards smaller spaces.
- Typically, condo units are less expensive as compared to single-family homes, making them ideal even for first-time real estate investors.
- When you choose to purchase a new unit, it is already in a habitable condition, which is why you may need only a few minor modifications to ensure it meets your needs.
- The elected condo board will help look after the day-to-day management of your building.
- Condos typically come with a wide range of excellent amenities that can help attract potential renters, including a pool, gym, guest suites, and more.
- Also, the resale demand in most cases is quite high, which allows you to have a good exit strategy in place, thus, protecting your interests.
Investing in a Condo Vs Buying a Single-Family Home
Buying a new luxury condo for investment comes with a few advantages over purchasing a single-family home. It is what you need if you are looking for a higher rate of return without much involvement in managing the property. Here are a few benefits that condo owners have over family homes:
- The purchase price of a unit is generally low as compared to single-family homes.
- You also have equity and tax advantages when you choose to invest in a new condo development.
- Renting out your condo is more economical because of the shared building upkeep and maintenance expenses.
- There are rules governing condominiums that help to limit a tenant’s undesirable behaviour and benefit the landlords.
Questions to Ask Before Investing in a Condo
In addition to the location and neighbourhood, you must consider several other aspects when buying a condo for investment. Here’s a list of questions you must ask yourself to know whether you are ready for this financial commitment:
- Do I have enough funds to invest in the real estate market?
- What are the lender financing or mortgage requirements?
- Is the building I plan to buy a unit in under any litigation?
- Is the condo located in an area with high rental demand?
- Does it have excellent amenities, easy accessibility, a hospital and school nearby, and more that can help attract potential renters?
- Does the location have promising development opportunities in the future?
- What is the typical annual rent that I can receive from renting out the unit?
- How long do I plan on keeping the condo?
Other Things to Consider Before Purchasing a Condo
Condo Corporation’s Fees
Most people believe that condo fees are expensive because they do not know what they cover. A few things that these fees typically include are as follows:
- Building insurance
- Roof maintenance
- Garbage removal
- Pest control
- Basic cable
- Pool maintenance
- Exterior repairs and upkeep
If you choose to buy a single-family home, you’d have to bear these expenses yourself.
Condos Bylaws and Status Certificate
Before buying a condo for investment, you must understand the legalities involved, particularly the rules and regulations laid down by the condo association. Make sure they are in line with your requirements. Also, examine the status certificate to review the information about the unit you plan to purchase and learn about the major repairs or renovations that the corporation plans to undertake. You should know about such details because they could affect your condo maintenance fees.
Understand the Local Laws
In addition to the condo association’s rules, you should also consider the local municipal bylaws. This is because they may have restrictions regarding the number of tenants in a unit, the building’s fire, electricity, and other safety codes, major renovations, and more.
This is why it helps to work with experts such as lawyers. They can ensure you understand what you are getting into when purchasing a condominium. In addition to this, you must also consider your financial stability, income and expenses, including mortgage, insurance, maintenance, and more, to assess whether you can afford to purchase a unit.
Contact Wyldewood Creek Condos to Purchase a New Luxury Condo
If you are looking to buy a condo for investment at a beautiful location, we can help! Wyldewood Creek Condos provides excellent units that are known for affordable luxuries. Our four-season living community offers a resort lifestyle with a beautiful clubhouse, an all-season outdoor pool and a hot tub, a heated outdoor patio, an urban fire pit, and much more.
Each of our three-bedroom units is well-equipped to ensure comfortable living. They come with a gas fireplace, eco-friendly flooring, custom cabinetry, private storage lockers, a designer kitchen with granite countertops, and more. The interiors are artfully curated and are perfect for living, relaxing, and entertaining.
Whether you plan to live in the unit, use it as a vacation home, or rent it out for additional income, our condos are the perfect fit. For more information about our new luxury condos, view our floorplans or feel free to reach out to our sales team by calling 705-445-3111 or 1-800-315-4663. You could also fill out our contact form to register online with us.