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:
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.