The simplest way to think about a real estate investment is simply whether or not the value of the property is higher than when you first bought it. However, there are several additional factors that make investments in condos (as well as other types of residential real estate) one of the best ways to help you prosper:
- At its core, a real estate investment is a way to ensure that your savings and hard-earned salary are utilized to the maximum possible extent. While the market is cyclical, buying a condo or a home as an investment property is one of the best ways to grow your savings-and build your wealth.
- The Ontario Growth Plan has radically altered the Greater Toronto Area’s growth trajectory, with a higher emphasis on sustainability. This has led to more condominiums being constructed, and while these are smaller than single-family homes they also offer the opportunity to live a lifestyle that is not centered around driving. As a result, condos are one of the strongest investments that can be made in the GTA.
- Renting out your new investment property is the most common way to recoup the purchase price. Thus, when choosing a location for use as a rental property, several major factors should be considered first:
- Rental prices-the existing rental market in a neighborhood is a good indicator of its investment potential.
- Jobs-Investments are most optimal when they are close to major employment centres, or other locations with high concentrations of jobs. This is due in large part to increased emphasis on walkability and transit usage.
- Future growth-If the neighborhood is poised for high levels of future development, this makes it a prime location for investment-and for a lower price than later investors would be paying!