Condo Purchase for Investment

[Dan]

I would be interested in hearing about current new build condo projects that others feel would be a good purchase for an investor.
What project would you buy and why? Do you have examples of unit sizes and current prices?

 

[Josef]

My avatar says it all

 

[andrewmp]

I too would like free investment advice

 

[simuls]

In this market, I would advise that there is almost nothing to buy in terms of a good condo investment. Many others on here will disagree however.

 

[Observer Walt]

Josef: no offense but a bit of explanation might strengthen your case.

Simuls: no offense but I am one of those who will disagree. Look around carefully. There are still deals available, but do the homework, both on the property and on the potential tenants. You can start, these days, with good financing, but there are other factors at work as well. How many times, going back for years, have I heard that there is nothing to buy, and how many people have I seen making money, thank you.

 

[Josef]

OW- Not a problem I didn't elaborate, as I was just throwing it in and being sarcastic. Prices are set a little high these days.

 

[TrickyRicky]

I think Dan, the real question is not where, it is what? By this I mean what is your investment strategy and what are your strategic goals?

 

[GraceCondos]

I think Dan, the real question is not where, it is what? By this I mean what is your investment strategy and what are your strategic goals?

TrickyRicky hit the nail on the head.

Which strategy are you focussing on:
1. Buy off plan & flip at occupancy
2. Long term hold with rental income
3. Medium term hold with break even cash flow but hopes of appreciation

What do you want to do?

 

[TorontoMike$$]

Buy off plan and hold.
Buy in an up and coming area - east waterfront, king E, Queen E, financial dist south
Buy high quality projects - ICE, Maple Leaf Sq, etc etc
Focus on capital appreciation as opposed to rents
Don't listen to people on these boards that say there is nothing to buy because if you do your homework there will always be something to buy!
Good luck!

 

[RealEstateGirl]

Buying off Plan

I have a question. I have purchased off plan with the intent to sell on occupancy at (hopefully) a profit. The question is, can I sell on occupancy or do I have to wait for the building to be registered? I'd love to hear from anyone who has done this before.

REG

 

[GraceCondos]

Hey Real Estate Girl!

In short: yes you can.

It's a different process and instead of selling the condo, you're actually selling your original contract to another buyer. You are selling an assignment. There are pros and cons to going this route insead of waiting until after registration.

I'm helping a client do just this after they get occupancy of their unit in VU next month.

Feel free to IM or email me and I can explain in greater detail!

 

[carturo15]

some builders do not allow assignments like Freed Developments, so you have to wait until registration if you want to sell your unit.

 

[GraceCondos]

^^^ True.

Some don't unless you negotiate that right into your deal when buying from the builder. Sometimes there is a small fee, sometimes you can get no fee.

 

[cdr108]

I have a question. I have purchased off plan with the intent to sell on occupancy at (hopefully) a profit. The question is, can I sell on occupancy or do I have to wait for the building to be registered? I'd love to hear from anyone who has done this before.

REG

I'm a bit confused here ... didn't you indicate in some other threads that you bought several pre-construction properties?

didn't your realtor inform you before hand, etc?

 

[GraceCondos]

I'm a bit confused here ... didn't you indicate in some other threads that you bought several pre-construction properties?

didn't your realtor inform you before hand, etc?

Not everyone uses a Realtor to buy from the builder. So the builder may not have offered up this advice if she dealt with them directly.

Also, some Realtors who don't do this often are confused by the Initial Occupancy, Interm Occupancy Fees and Final Registration process. The closing process is much more simple in a resale situation. The Realtor may not have known what information to give her.

Thirdly, maybe it was not her intent to sell upon occupancy, so the Realtor did not feel they had to go over those options with her... Although one of the first two scenarios is more likely.