Condos are a fantastic investment especially if you are a first time investor. Here are four reasons why I say this;
1. Condos are cheaper than houses. It will be easier to get approved for a mortgage and you won’t have to break the bank. Condos are a more affordable option and you will be able to focus on your role as a landlord without being overwhelmed.
2. Condos are easier to rent. The condo market is less seasonal so the pool of renters is more consistent and stable. This is important for landlords as it minimizes your risk of sitting on a vacant property.
3. There is less maintenance for a landlord to worry about. As a condo landlord, you are only liable for the upkeep of the appliances and paying the maintenance fees. When investing in a house your operating expenses are much higher as you have more to maintain and more responsibilities. Did you know that it’s the landlord's responsibility for snow removal and lawn care? Not the tenant’s!
4. You don’t need to live in the same city as your investment property. Condos are not only turn key for tenants but they are for landlords as well. Because of the low maintenance of a condos, landlords have the luxury of investing in growing cities without having to live where the property is. If you are worried about getting a call from your tenant, simply hire a property management team to assist you with your tenant. This is normally a small costs of about 6% of the monthly rent each month and you are completely hands free.
It’s only a matter of time for residential housing prices to sky rocket here in Barrie. This will make it very difficult for investors and end-users to afford to purchase a house. People will then turn to condos because it’s the best alternative, not becuase it's a lifestyle choice. This is exactly what happened in Toronto 10 years ago and will eventually happen here in Barrie as the city continues to grow. What does this mean for the investor? Get into the condo market now as growth is the only option.
If you have any questions on Barrie's Condo Market or would like to invest in a condo, please contact Ashley Lamb to discuss your options! [email protected] or 705.816.LAMB (5262)