7 Reasons a Condo Investment Makes a Lot of Sense

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Mimico is a picturesque neighborhood situated close to Lake Ontario. A few years back, I visited the area and looked at a few Mimico condos in Toronto, and fell in love with the place. So I decided to buy a 3-bedroom condo with a breathtaking view of the lake. Back then, I wasn’t really thinking about the investment aspect of my purchase. All I knew was that I wanted to live there.

But as an investment manager, I wouldn’t really recommend that you act as impulsively as I did. I’m just lucky because the real estate market in Mimico now is doing great. If you’re planning to invest in a condo, you need to really do your research to ensure you’re making the right choice.

When you find a reasonably priced property in a fantastic location, a condo investment actually makes a lot of sense. Here are a few reasons why:

  1. Even though it may take a bit of time to get any capital gains from your investment, condominiums can be your safest bet in investing. The prices of condos today are still affordable (compared to a house) and some banks offer flexible payment terms.
  1. The real estate industry in this economy has been doing pretty well over the last 10 years. Property investments also pose very little risks because there is a variety of ways you can make money from your investment.
  1. With a condo, you can have access to topnotch amenities at very minimal cost. Amenities like infinity pools, a gym, and even a spa can be made available to you and all you need to do is pay the maintenance fees imposed by the building management.
  1. In key cities, condos historically have high resale value. The prices of condos also rise with inflation, and any improvements in the building can boost property values as well.
  1. It’s easy to find renters. The rental market in Canada, especially in Toronto is doing well and you can rent out your property at a very good rate. Single employees, couples and students prefer to rent a condo near their place of work or school rather than spend an hour’s commute to get to their destination.
  1. The financial demands of condo ownership are less than those of house ownership. This is especially beneficial for first time homebuyers who may not be able to afford a large down payment. Condos are generally cheaper than a house of comparable size, and as such, the down payment requirement is much lower as well.
  1. Re-selling a condo is easier. Should you decide to re-sell your condo in the future, you’ll have a much easier time finding buyers. More and more people these days are choosing condos over houses due to the convenience of the location and the affordability of condos.