Just because your friend bought condos on speculation and got lucky, does not mean that you have a sure bet. You need to be smart if you want to succeed in real estate investment. Here are six tests to bear in mind when buying condos for sale in Toronto.
1. Developer experience
One of the shortcomings of heated markets is that they attract amateurs who want to get in on the action. In most cases, the products lack design and quality regardless of how good they look on paper. The underlying issues will make you want out as fast as possible. It is good that you consider buying a condo from a local developer that is well-known to have successful products in the locality.
Real estate investors make money by what they pay for the investment rather than what they sell for it. If you want to make enough money through condos for sale in Toronto, you need to avoid inflated prices. Consider even buying a condo in downtown Toronto because the prices are lower so you will make a kill with the investment.
3. Location and neighborhood
Condo investments depend on their locations and their surroundings. The environment makes the condos and not the other way round. However, it does not mean that the neighborhood has to be redeveloped; it means that it has the foundation for rental capacity and resale. Therefore, before you invest in a condo, make sure that the location is suitable and has a great potential for growth. Besides, the neighborhood should be secure so that it will be a worthy investment when you want to sell it.
4. Development logistics
As a real estate investor, you ought to examine the layouts of the project, the size, amenities, and design among other factors. There are other determinants of the investment apart from price and developer. If the project is viable, you can be sure that it will feel more like a temporary bus station and less like a community.
5. Running the numbers
The rental numbers for the project must make sense for resale value even if you are a growth player. A long-term investor focuses on the cap rate of the condos. A strong investment should have a future rental capacity and a passive portfolio. If you are interested in learning more, visit Reza Afshar Real Estate.
You need to look into the features available in a project before investing into it. Most developers add features to condos to make them more attractive to investors. For instance, some drill wells so that the project as a constant supply of water and others build lofts. When looking for a condo for sale in Toronto, make sure you look at the amenities and its layouts. Most developers also incorporate lofts to add on to the storage spaces available in a condo. You should buy a condo that appeals your needs and preferences.