Is Investing in Condos in Mississauga a good idea?
Like
almost any investment, you need to look at the type of return that you are
expecting as well as the level of risk that you are willing to assume.
Investing in condos is a safe long term investment with a historical increase
in property values significantly above inflation. As far as I am concerned
there are 3 certainties in life...death, taxes and the fact that real estate
value will always increase over time (at lease until we colonize other
planets).
Having said that, I do not recommend "flipping" condos or looking at
a condo as a short term investment. The costs of entering and exiting are just
too high. For the long term though, condos in the 600-700 sf range in high
quality areas are excellent investments.
Real Estate provides 3 powerful ways to earn a return:
1. Property value increase - As I had mentioned above the historical increase
in property values is significantly above inflation. At any given time the Real
Estate Market can be up or down, but over time it will always increase. The
only time that you will lose money in real estate is when you are forced to
sell.
2. Paying down your mortgage (building equity) - The rental market is
incredibly strong, as are rental prices. This means that you can have someone
else pay your mortgage down and build equity for you(hopefully without you
spending a dollar on anything other than upkeep).
3. Monthly cash flow from rentals - While most new condo purchases yield are
"break even" investment up front, as rental prices increase over time
(all things equal) your mortgage payment should actually decrease, which will
create a monthly cash flow that will grow year over year.
With 25 years of real estate experience I would be happy to answer any questions. Just call or email. Happy Home Hunting!
LISA PORTOLESE
Salesperson
ROYAL LEPAGE KINGSBURY REALTY, BROKERAGE
905-568-2121
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