Skip to main content

Is a Condo A Good Investment?

This post has been contributed by Brian Madigan, who is also a member of the Ontario Condo Group. Brian is a Broker with RE/MAX West Realty Inc. Brokerage in Toronto. 
This is a question that is frequently asked. Essentially, it depends upon your expectations and your analysis of an investment return. Traditionally, individual single-family homes have outpaced the return over time of other classes of real estate. So, for overall long-term appreciation, single-family homes offer the greatest prospect for reward. But, you must appreciate that it also means good well-located homes. If that is the case, then do you only include good well-located, well-managed condominiums?
It is often said that real estate is a good investment because they’re not making any more of it. However, that is really not entirely true when it comes to high-rise condominiums. You can acquire an excellent apartment on the 23rd floor of an expensive condominium. Ten years later when it is time to sell, you find out that the developer of your building is constructing a twin tower across the street. This new supply decreases the prices of the existing units already available in the marketplace. This generally doesn’t happen with single-family homes. The new houses are often located miles away and have a much lesser effect on the market.
Condominium apartments are particularly attractive to:
• First time home-buyers due to the price
• Investors because of the property management
• Empty-nesters who like to travel because of the security
• Owners who wish to have a specific location (ie. Downtown Toronto)
• Owners who wish to have a specific amenity (ie. waterfront property)
• Owners who wish to interact with their neighbours (recreational facilities)
• Third time home buyers due to the exclusivity associated with a higher priced properties
These particular factors all distinguish themselves from the single-family home statistics, rendering such comparisons essentially meaningless.
Over time, condominium apartments have proven to be worthwhile investments and many have demonstrated superior returns compared to other investments.

Popular posts from this blog

My Favorite Hamilton Food Blogs

Surfing thru local blogs is a great way to get a feel for the City and hear directly from the voices who live here. Here are a few of my favourite food blogs: Hungry Hammer Girl Restaurant reviews of Hamilton, Ontario and surrounding area. From a food lover, a world traveller and an-at-home-chef this blog will hopefully give you a good sense of a place and whether its somewhere you'd be interested in visiting.   Link to Blog: Hungry Hammer Girl Hamilton Eat Local and the Good Food Box Articles on local and high quality food sourcing. Good lists of links to local food markets, cafes and restaurants. Link to Blog: Hamilton Eat Local I heart Hamilton An all around fascinating cultural blog with the theme ' be a tourist in your own town'. Has a food label for our specific topic search. Link to Blog: i heart Hamilton un haricot vert A foodie's very detailed review of restaurants throughout the Hamilton area . Link to Blog: un haricot vert  

SPACE AND PLACE

I am a Real Estate Broker providing full service real estate to clients throughout Southwestern Ontario.  I specialize in helping you find the ideal community and a home within that city, small town or quiet rural corner.  My twenty years of experience and advanced training in marketing, negotiation and contract management make me the ideal person to list your property and attract the perfect buyer. 

Are Canadians dreaming of owning a home? It’s complicated: RBC Poll

Article: RBC website   36% of non-homeowners under 40 have given up on the dream of owning a home 62% of Canadians say most people will be priced out of the housing market in the next decade 60% of Canadians likely to buy in the next two years are saving $789/month on average "When it comes to purchase intention, despite 54% of Canadians polled saying it is a sellers’ market (up from 41% last year, highest since 2009), there is a large increase in Canadians who are considering buying a home in the next two years (30%, up 8% from 2020). This rises to 49% for those respondents under 40 years of age and 66% for new Canadians who have been in the country less than five years. Many factors are on the minds of Canadians when thinking about whether to buy now or buy later. According to the poll results, interest rates and concerns that homes will become less affordable are key reasons why many Canadians are considering buying sooner. In fact, 41% of Canadians surveyed are thinking about