There is a wide range of opportunities in the real estate market for investors and first-time home buyers. But have you ever thought that; are condos a good investment option? However, the real concern remains to choose between buying pre-construction condo vs. resale condo. Regardless of what option you may go with, the Canadian real estate market is currently thriving and you can make good returns when you invest in condo.
Both these options come with their own pros and cons. For instance, if you are thinking of a condo for real estate investment, you can benefit from carrying costs, occupancy fees, and the perk of living in a dense high occupancy housing community. Condos offer a great way of breaking into the real estate market but before you make any solid decisions for the future, you need to look at the advantages and disadvantages of choosing a pre-construction vs. resale unit.
Matt Elking, the Managing Director and partner at Connect, says, “The pros of it for most first-time buyers are that it’s more affordable. The reality is, if that’s what your budget allows for, then you’re going to do [better with] a condo. And with that being said, depending on your lifestyle there are a lot of advantages to living in a condo.”
Advantages of Buying Pre-construction Condo
Before making a choice on condo for real investment, you need to make sure that you look at both the perspective. The main benefit that makes Pre-construction condos investment is a better choice for which comes at a lower price than the resale model. The major risk that throws off investors most of the time is the risk of delays because you can never be too sure if your pre construction condos can be completed in the due time.
However, this problem can be well taken care of if you go with one of the trusted dealers in the business, such as Tridel Group. Tridel has served as the leader in the Canadian real estate market for decades now and has provided countless families and individuals with their dream homes.
Another benefit that you get while buying pre construction condo is that they are bound to make a profit by selling them. As you will be paying a lower amount while purchasing them, when you decide to sell them, after the construction phase, the market value would have already been increased.
“You know if you’re buying today you’re buying an asset. You’re buying something in 2025 [but at a] 2021 price,” Elkind said.
Along with this, you can also choose the floor plan and your own designs for the condo. However, you can even increase the worth of your condo investment property by making necessary renovation in it. Here are few suggestions which an individual should consider while remodeling condo.
“It’s a very passive investment,” Elkind said. “You don’t have to deal with tenants and there’s nothing that you need to do until the condo is ready.”
With this, I won’t be wrong saying that the aesthetic of condo is no less than a house or it would be right to phrase that it is better than that.
Advantages of Purchasing Resale Condos
Resale condominiums are preferred by families or individuals who are in a hurry to move into their homes. By choosing the presale condo properties you can move in much sooner than a pre-construction condo. However, for resale properties, you will need a mortgage because purchasing these condos is different from investing in a condo in its building phase.
It also offers better liquidity and scope for making an immediate profit by renting it out or moving in yourself.
“In most areas like in Toronto, if you pay a million and a half dollars for a home on the rental market you will not be cash flow positive,” Elkind said. “Whereas on the condo market, in a normal rental market, you have that opportunity.”
Real Estate or Pre-Construction: What Suits You?
In the end, it always depends on the situation of the investor and what he or she might be looking for in the condo. Both these condos make a great choice but currently, Pre-construction condos are hot-selling items in the market. It offers one of the safest investments and higher returns as compared to the resale units.
“I think what’s really important that people remember is that real estate is an asset,” Elkind said. “Specifically Toronto real estate has done incredibly well over the last, you know, three, two decades. It’s a really safe place to put your money where you can get really solid returns. And as long as you’re investing with, with a long-time vision. You know, historically you’re going to do incredibly well.”Definitely the fact can’t be denied that condo for a real estate investment is noteworthy beneficial and growing future. The condo investment property is new trend and tempting enough to high your banks. So, what are you waiting for? Choose the best condos in Toronto from the below link and go for correct choice.
