5 Tips to Invest in Pre Construction Condos GTA
Planning to invest in pre-construction condos in GTA? The good news is that condos in GTA make for a sensible purchase decision.
However, real estate is not a one-size-fits-all strategy. Therefore the question is what should a buyer look out for profitable purchases?
Here are the top 5 tips that you need to know to ensure your pre-construction condo investment in GTA is a sound one.
Know your goals
The type of product you invest in depends on your goals as an investor. Are you investing in equity or looking for an investment that would generate cash flow?
GTA’s lucrative housing market and rising interest rates have increased the carrying costs, making it difficult to search cash flow properties. However, there are strategic ways to improve margins, such as a higher down payment or buying the right product. The real estate agent knows best.
Return on equity
If you are looking for equity gains, you need to think long term! Condos in GTA are a great option as prices have been stable and have risen significantly. An experienced real estate agent can help you navigate the right product and the right neighborhood so you can achieve greater equity gains.
Know your budget and closing costs
Make sure you know how much cash you need and how much loan you can afford to carry. This will affect the types of properties to evaluate when investing.
In addition to your down payment, you must also calculate the final expenses. Also, it is important to understand how an investment will affect your taxes.
Understand neighbourhood closely
Focusing on the price per square meter is an excellent indicator of the return potential of an investment. Look for gentrifying neighbourhoods that have a lower price per square meter compared to a comparable unit in the same neighborhood.
It is highly recommended to make investments in pre-construction condos GTA where you can charge a premium in rent.
Know how to make a good deal
There are many other factors to consider when looking for a profitable investment condo in GTA. Some of these include:
Does the builder have a good reputation?
Does your space or floorplan get you rent for a premium?
Is there future infrastructure development in the area?
To find a good deal, hire an experienced realtor to help you.
Make sure you play by the rules
Make sure you follow the rules when investing. This includes understanding the rules for short-term leasing to flipping condos and the associated financial consequences.
If you sell your investment too fast, you run the risk of being taxed as a seller rather than an investor, which states that you can be taxed at 100 percent of your profits as it is considered business income. It is best to get legal property advice from your attorney or accountant on tax returns.
When it comes to investment opportunities in pre-construction condos GTA, just remember: it’s not merely about buying something, it’s all about buying the right thing.
Equipped with these five investing tips, you can be sure that you have invested under proper guidelines and sound advice.