People buy the Peter and Adelaide Condos in Toronto for a variety of reasons. The top two of the reasons are either to obtain a steady rental income. This can be for two reasons. Either to offset the finance costs of the condo and obtain a steady income, or to offset those same costs while waiting out the finance period and then hopefully dispose of the condo at a profit. The second is obviously as a home for the family.
Both of these options mean that there is a steady and growing market for condos across the globe.
However, prior to purchasing a condo the buyer should be aware that there are both pros and cons to purchasing a condominium, although in the eyes of many prominent realtors the pros far outweigh the cons.
Firstly buying a condo for investment purposes or especially to obtain a rental income can be a tricky business. A balance has to be struck between the ability of the condo to generate exceptional returns through rental and the eventual sale price some years down the line. The key as per usual – and with every property purchase is that location is key. It’s always tempting to look at coastal vacation spots during peak season where rentals are hard to come by and think that a condo in these areas would be a great investment. However, those condos often sit vacant for much of the down season.
It may be a far better option to look at established areas in cities where slow but steady growth has been proven. These are long term investments which pay dividends above other asset classes.
It is far preferable to have a long term tenant than it is to have on and off again rentals. The premium that can be charged during peak seasons very rarely covers the upkeep and finance that is required for that condo purchase. there are exceptions – but they are far and few between.
Of course if you are going to be purchasing a condo for your own use the logic is completely different. The lock up and go lifestyle is particularly attractive to younger people with smaller families. The facilities offered by modern condos can make living with smaller children an absolute pleasure. Playgrounds, pools, gyms and security are among the most attractive reasons to purchase a condo for this demographic.
The key to successful condo purchase and condo living is to identify exactly what suits your lifestyle and investment criteria. Answer those questions and your condo purchase will be one of the best that you have ever made.