Condo Investing: The Perfect Suite
The condo market is on the rise across in Canada as people look to improve their quality of life, downsize, and access affordable housing in desirable locations. You can take advantage of this movement through clever investments in key locations, generating reliable rental income and building equity in a way that’s more affordable, less time consuming, and easier to manage than other real estate investments.
A good pre-construction condo investment will do three things:
- Build Equity,
- and—assuming you’ve rented it out at a good price—generate positive cashflow. All with minimal effort.
You’ve identified the key location and project for you, but what about selecting the right floor plan to support your investment plan? We’ve put together some key tips
Check out our top condo investment tips to help you make a profitable suite choice.
Tip No. 1 – Use Space Wisely
Open concept plans, minimal hallways, clean shapes (no odd angles).
Tip No. 2 – Windows and Light Sources
Balconies, windows, and natural light sources are an important draw for many buyers. Plenty of natural light is more valuable than the unit’s placement within the building.
Tip No. 3 – Two Bedrooms and Two Bathrooms
When looking at investment units, buyers will often look for two bedrooms, but compromise when it comes to bathrooms. Two plus two is so much better in investment terms as it means that two people (or couples or families) could feasibly share the unit, providing two sources of income.
It also means you could live in the unit — or at least keep one of the bedrooms and bathrooms as your own — while renting out the other bedroom and bathroom to a friend. Both of these situations become far less feasible when you lack that second bathroom.
Tip No. 4 – Parking & Locker
Many condo-dwellers don’t need a parking spot simply because they don’t have a car. However, buying a unit with a parking spot is a good idea for several reasons.
- Many people do still have cars, even if they don’t use them that often. For example, downsizers probably won’t be ready to part with their car completely.
- If your renter doesn’t need the spot, you can always rent it out separately. There are tons of renting couples and families that have multiple cars and only one parking space with their own unit, so renting yours out should be easy.
- With so few parking spots and so many people, it can be very difficult to buy a space after the fact, so purchasing one with the unit is a good choice.
With condos getting smaller, renters will be looking for that extra space. A locker is always a value add!
Tip No. 5 – Views from the Six
While not essential, securing a view can add value to your investment. You have to pay for the privilege, of course.
A waterfront view is first and foremost stunning. There’s nothing like gazing out of a window or from a terrace and watching the calm, glistening lake below. But it means more than that. Waterfront is limited and therefore precious.
All of these factors combined help to protect your long-term investment.