Why pre-construction condos are a great buy

There are many ways you can invest and make money in real estate. Investing in pre-construction condos can be highly lucrative with minimal effort.

Here are four reasons why:

1. Leverage

With just 15 to 20 per cent of your own money, you can buy 100 per cent of an appreciating asset, and you get to hold that asset for three to four years without making any payments. Over the last decade in Toronto, thousands of investors have seen incredible returns by simply buying, waiting, then selling on completion.

2. Access to triple-A locations

Condo investing allows ordinary investors to get a piece of real estate in otherwise unattainable locations on streets like Yonge, King or the waterfront. With many developers offering flexible deposit structures, you can own in these prime locations for a fraction of what it would cost to buy a commercial property, a house, or a small apartment complex in the same locations.

3. Low maintenance

New condos are perfect for the busy professional or self-employed business person because you can own multiple units with little to no monthly property management. New condos offer the lowest maintenance with the highest rentability, so there’s nothing to fix or maintain.

4. Rental demand

The need for new rental units is now filled almost entirely by new condos, and tenants always want to live in the latest and greatest buildings. Buying pre-construction guarantees you will own and rent the newest apartment on the block, which condo investors know is a very lucrative experience.