As with any type of investment, if you’re thinking about putting your money into a condo with a view to flipping it or renting it out, you’ll naturally want know the return you can expect.
Investing in a condo is a relatively safe option, provided it’s located in an attractive neighbourhood with a reputable builder. Ideally, the longer you’re planning on holding the property, the better.
As a standard rule, expecting to sell a condo after only three years is not going to provide a good return on investment. (This, of course, is an argument against flipping.)
Another great reason to hold on to a condo for as long as you can, even if you’re renting it out, is that over time, property values increase at a rate above inflation. You can also use the income from rental properties to pay off your mortgage and build equity. And since rental prices in hot markets like Toronto, Vancouver, Boston and Chicago are always more than the cost of monthly mortgage, you can save money as well.
There are a lot to consider if you’re thinking of investing in a condo but, most importantly, remember it’s for the long run!