Nowadays, property is still regarded as one of the safest investments on the market, as housing prices typically increase in value over a period of time. This has led to a new wave of property investors buying multiple condos in a bid to diversify their asset columns and make more money. So today, we’re looking at what you need to know when purchasing your second condo.
Neighbourhood Selection Process
When shopping for a second condo, it’s crucial to select the right neighbourhood. It’s important to ensure your investment is going to make money in the future, and potential homebuyers will shy away from areas that are plagued by crime or major nuisances.
We suggest properly scoping out an area and make repeated visits to ensure it’s safe and the neighbours aren’t too noisy. It’s also important to utilize your social network and ask around to see if anybody knows any current listings in a safe community.
Determine Who’s Going To Live There
It’s important to contemplate who’s going to live in the condo. If you’re thinking about renting the unit out, it’s crucial to check out with the condo board, as some associations prohibit owners from renting.
Once you’ve gotten all the details sorted and the unit is up for rent, keep in mind your audience. If the unit is located near a university, you’re going to get a lot of student applicants.
Can you afford to purchase a second condo? Well, it’s best to visit a bank or your financial advisor to properly comb through your finances and determine if this investment is in fact feasible. Keep in mind, the Bank of Canada has increased the mortgage rate in the last few months, and in order to get a fixed mortgage rate, you’ll need to provide a hefty 20 percent down payment.
If you’re in a good financial standing, immediately apply for a preapproved mortgage, which basically tells you how much money the bank will lend you towards purchasing this property.
Work With People You Trust
Buying a condo is a huge undertaking, so it’s important to work with people you can fully count on. If you’ve had a positive experience in the past working for a realtor, we suggest sticking with them for the purchase of the second condo. If any issues arise during the process, you can confidently rely on this person to smooth out any unexpected bumps.
Buying a second condo can be a great decision to your asset column and really increase your financial portfolio. If you’re currently looking for a second condo, consider one of DevMcGill’s innovative construction projects. Our condos are truly unique, as our architects have worked tirelessly to blend modern design with classic beauty.
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