I can’t tell you the number of people I meet who are debating if they should purchase a condo. The most popular question tends to go along these lines: “Isn’t buying a condo a bad investment right now? There are so many condo buildings being built at the moment”.
I always say, its a matter of lifestyle and for most condo-buyers such decision is dictated by LIFESTYLE rather than by the current status of the market. We also have to keep in mind that the condo option allows many people to afford a home in the downtown vicinities, gives accessibility to many ammenities at a walking distance and removes the worry of maintenance from the homeowner’s mind.
Many condo owners who have owned for many years complain of selling for less than previous years, however, it’s very unlikely that they are getting less than what they paid for a few years ago. What happened is that the supply now is not as limited as it was back then. Other factors that may affect the “sellability” of a condo are the upgrades and the location of a condo within the property itself. Many upgrades you might value, are not worth much to a buyer. When it comes to which flood to purchase your unit in, I usually suggest my clients to stay in the middle of a building…especially when purchasing a new construction unit since every floor you go up comes with an increase in price).
Let’s say you’re renting; how much money do you give your landlord every month? That could be money used to pay down your own mortgage. When I started investing in Real Estate in Ottawa, it was in the condo sector —mainly since its worry-free! Another benefit of condos is the demand and the ease of renting them. There’s always people looking to rent in the downtown areas and as a new home-owner looking to rent out their property, condos can be a perfect fit.
We also have to remember that Real Estate is a cycle, and downturns are temporary. It might be the perfect opportunity for you to grab a condo at a good value!