Similar to investing in an apartment or a house, you can never be too careful when investing in luxury condos. The Canadian property market is filled with options and opportunities; now is the perfect time to start if you want to expand your investment portfolio and buy luxury condos for investment purposes. To help you get started, here are a few more tips to keep in mind.
Get Proper Legal Support
Investing in a luxury condo means investing a relatively larger amount of money, so don’t hesitate to go the extra mile and check (and re-check) everything before finalizing your decision. You should always have a legal team supporting you every step of the way.
Your lawyer can help read the purchase contracts, the terms and conditions – particularly if the property is managed by the developer – and other legal documents thoroughly. Make sure you don’t have to jump through hoops just to be able to rent the property for income too.
Top developers now offer guarantees. For example, a prominent luxury condominium at the heart of Montreal may come with guaranteed level of services as an exchange for a monthly service charge. These guarantees need to be checked as well before you make any purchase decision.
Location Is Still Important
Many realtors will tell you that location isn’t really a big deal when it comes to luxury condos; the services offered by the building management as well as the wealth of facilities available inside the condominium complex will more than make up for bad location. This is actually NOT true.
Location is still very much important, especially if you want the investment you make to turnover a healthy amount of profit, both from the growth in value and from the rent you can get along the way. Do your homework and check out the condominium at different times. Be sure to also check the neighbourhood.
The closer it is to city centre, the better the condominium can be as an investment. This is why condominiums à vendre à Montréal are always best. They offer the best growth in value in the long run, plus you can rent them out for much more.
Stick to Your Budget
There is no point in investing more than you can afford. It will only put pressure on your portfolio and limit your options when you have to deal with a potential loss. The same principle applies to buying a luxury condominium.
You can always use the best financing options to finance the purchase. A good mortgage loan with a relatively low interest rate and fees can really help you get the condo of your dream. Make sure you can really afford the monthly instalment and that the set down payment is well within your budget.
A good way to calculate if an investment in luxury condos is something you can afford is by checking the amount of money you can afford to spend on the instalments. If the instalments are more than 30% of your monthly income – including residual income and other revenues – then you should consider finding a more affordable condo to invest in.