What to Consider When Purchasing a Condo
The most common mistake among uneducated real estate investors is not executing research or developing an investment strategy. Novice investors without any real estate experience sometimes jump on the bandwagon when they hear about friends and family who are earning extra revenues in a fast moving market and blindly put their hard earned money into an income property that does not garner the best return for their investment.
Below are a series of key investment checkpoints we recommend keeping in mind before you consider an investing in a condo property.
LOCATION, LOCATION, LOCATION
When considering a condo purchase, you should always consider its proximity to amenities and resources that will add to the appeal and value of the property to future buyers.
Look for properties that are close to major transportation resources such as highways and public transit. In addition employment hubs, developing neighbourhoods and proximity to schools, shopping and other convenient amenities are important considerations when choosing a property location.Also, if you are looking at purchasing a condo as an investment property, potential renters will also take into account convenience and appeal of the locale.
- - Look for areas with population growth rates
- - Look for areas with job growth
- - Look for areas that are noticeably developing with city revitalization and new infrastructures being built
- - Look for properties close to top rated schools
- - Look at an area’s transportation system and development
A common mistake amongst first time buyers is the lack of research into a builder’s track record. Be sure to do your homework and look at how their prior developments have faired in appreciation values in the resale market. Check to see if there is a pattern of appreciation and demand for the builder’s prior projects as this will be a good indicator. Also look at the reputation of the builder’s commitment to timing, service and construction quality.
BUY (AND SELL) AT THE RIGHT TIME
Buying at the right time can mean the difference in your profit margin. Typically builders release condo units under local market value during a pre sale or project development launch. Purchasing a condo at this stage can be valuable as it allows buyers to have first choice of the most desirable units at attractive prices. In addition, keep your eye on the market averages and trends and note the timeframe for completion the builder is offering . Buying (and selling) at the right time is crucial to your success for investing in condo properties.
VIEW AND ELEVATION
It is proven that view and elevation are a key factor in the overall value of a condo unit or suite. Builders charge a floor premium when buyers look at purchasing on higher floors, primarily because the resale value of the unit increases based on the appeal for higher floors. In addition, the view from the unit is also a key factor for future buyers. Look for unobstructed skyline views or views of the lake or ravines vs. views of cemeteries, industrial complexes or close proximities to other buildings.
These are just a few considerations to keep in mind before you make your condo purchase. Sign up with the condo connection today to learn more!