Many people in the Canadian real estate market are looking to purchase condos rather than investing in homes or apartments. Why? Because they know they can yield fantastic results if the transaction is done right. You are acquiring a managed property, which means that most of the details are handled on your behalf. According to The Guardian, almost half of Canadian condos are not owner-occupied. Individuals have come to the conclusion that housing is an investment and not necessarily a place to live. Housing has turned out to be lucrative for investors who want to make it big.
Condos are not for the rich and wealthy anymore. Now, almost anyone is able to afford the square footage, as the numbers are not astronomical. They used to be this way in the past, but now it is a completely different story. The fact of the matter is that it is more affordable to buy a condo than any other piece of real estate. If you are seriously considering becoming the owner of a condominium, keep in mind the following aspects.
What is the best location?
Buying real estate property is not all about the location, but it is not an aspect you can afford to ignore. The condo has to be located in a desirable neighborhood which provides a good lifestyle. Do not think about what it inside the building. Consider its location. Some of the best cities in Canada to buy real estate are:
Renting real estate property in one of these locations is profitable – in other words, you can make substantial rental income. The dwelling should be located in a place where people have access to basic amenities. This includes stores where they can do their shopping. Make sure that you choose the best condo for your budget. Be realistic and purchase something that you can afford.
Understand your target market
While some people prefer to stay at home and admire the awe-inspiring architecture, others will want to be surrounded by lush greenery. Before making a purchase, think about what renters want. The demographics of your target market will give you a pretty good idea of who you are marketing to. Take into account factors like age, education, gender, race, income, interests, hobbies, lifestyle, and occupation. This information will come in handy at one point or another. Developers create projects targeted at specific groups of people. This means that they have someone in mind when they launch their projects. You should follow in on their footsteps.
When you check out people. You will immediately understand the differences that separate them. Condos are built for regular people like yourself. Unfortunately, they are not built equal. The Canadian society accommodates a wide and diverse variety of family arrangements, so that is something to keep in mind. Be cautious when investing in real estate. Make sure that you are addressing the right market. When you know for sure what motivates people, you can market efficiently and effectively. If you identify your renter, you are bound to be successful.
You may be eligible for the GST/HST rental property rebate
If you substantially renovate a rental property, you may be entitled to receive a GST/HST rental property rebate. The rebate is given to the person who paid the GST or HST. This refers to the landlord for rental accommodations. Until now, it was not possible to claim goods or service tax or harmonized sales tax on your returns you paid when acquiring the condo. Now, things are completely different. You claim the deduction with the government. You cannot settle things with the builder. You can apply if you meet the following conditions:
- You paid GST/HST on the purchase price
- The value of the condo does not exceed $350,000
- You have made considerable renovations, additions, or conversion
Al you have to do is to complete the application and submit it on time. Just so you know, there are people who can help you speed up the process. If you believe that the rules and regulations are far too complicated, call in the pros. They will help you navigate through the process.
Take into account the building culture
There is something called building culture which is worth your attention. It highlights the fact that no two buildings are alike. Each building represents a combination of architectural, social, and cultural history. A building is nothing more than a complex system made up of people, relationships and habits. This does not create a problem for you, but it does not make your job any easier either. Buying a condo as a major investment, which is the reason why you need to make sure that you are buying the right one.
Read as much as you can. You need to find out everything there is to know about the building and its history. If you have enough material, you can make an idea about what you are dealing with. Make sure to find a place that matches the lifestyle of your future renters. Research the local market and be prepared to ask questions. The real estate property will offer you a good return on the investment. You can invest in a standard condo or a vacant land condo. The choice is up to you. Just keep in mind that you are not making this choice for yourself. Keep the renters at the top of your mind.
Do you intend to manage the condo yourself?
If you do not have all the time in the world, you will want to consider hiring a property manager. This is indeed an expense, but a property manager can help you deal with unpleasant damage and repairs. You can focus your attention on building a real estate business, while the pros do their job. Just think about it. you will be keeping the condo for a long time. While you are not the one responsible for maintaining the building, you will have to tend to issues like fixing the roof or mowing the yard. And let us not forget about collecting the rent. Get some help.