Is buying a condo in Toronto a good investment?
Is buying a condo in Toronto a good investment? The answer is yes but only if you can afford the loss. Personally I don’t think purchasing a condo to raise a family is a good idea however purchasing a condo to possibly rent it out or to sell high when the market gets better could be a good idea. The thing to remember with Condominiums is maintenance fees which is a fee you’re obligated to pay along with your property taxes.
What this Means is you will have to pay maintenance fees even if you pay off your mortgage. In my opinion when you purchase a condo you never really own anything which is why personally I would only recommend investors purchase condo’s for appreciation and for the purposes of renting them out. Purchasing a condo however can make sense if you can purchase for cash and not have a mortgage but even doing that you really have to pay attention to those maintenance fees I know a bunch of people that are mortgage free and pay $600+ for maintenance related fees, also you have to calculate property tax which gets higher as the value of the condo rises. As long as you know how to play the game investing in a condo can be quite profitable
Some people prefer living in condos over houses if that’s you follow your heart and do what makes you happy but if you’re a money guy like me I would only purchase a condo for the investment opportunity and as most of you know when it comes to investing only invest if you can afford to lose your investment. When you invest with that confidence more money and more opportunity will often find its way into your hands.
For the record I don’t give financial advice and this article should be used for entertainment purposes only!