With the real-estate costs booming in Toronto, buyers are now looking for an affordable option—Xo condominium. Barbara Lawlor, president& CEO, Baker Real Estate Incorporated, is an expert we are questioning today to learn to maximize our condo investment.
When should one buy a condo with the purpose of investment? Should it be during the construction, pre or post construction?
The best time to buy a condo is during the time of pre-construction. It gives us the best suites at the best cost. More often than not, buying condos, pre-construction allows the deposit to do its magic. Experience a boost in equity before the investment closes after some years. Buying as soon as possible is best as the interest rates are still low and the prices are on the rise.
If the condo is not completed within the stipulated time frame, what can the buyers do?
The scheduled time frame for completion of Xo condominium is supervised by the Tarion Warranty Corporation. Buyers and builders are required to sign a Tarion agreement in which the extensions and occupancy date are mentioned. This also contains the recourse action a buyer can take if the deadline is not met by the builder.
If the Xo Condo isn’t completed within the aforementioned time, there are 2 options:
- Get out of the deal and recover your deposit
- Give the builder extra time
Reading the complete agreement carefully is an absolute requirement as this investment in Xo condominium is one of your biggest investments.
What should be considered while buying a condo for the purpose of investment? Is it different from the considerations while buying to live in it?
Yes, they are. For investment, the requirements of the target renters must be the priority. The location and the transport facilities must be on the top of your list as most renters probably do not own vehicles.
Do your research about the builders and their success rate. The conveniences, affordability and the green features which come with the Xo condominium must be paid attention to.
What are the trends for condo investors in Toronto?
Toronto condo investors contribute to the major part of buyers. Xo condominium, with their every year gains, is a solid investment. Most investors in real estate cannot buy houses so instead, they buy Xo condominium. Toronto is still exploring and expanding its limits in buying condos. However, it is walking in the footsteps of cities like London, New York and Paris, where real estate prices have gone through the roof. Affordability plays a major role in the growing investments in Xo condominium.
What is the weightage of condo fees in rental fees provided the owner wants to rent the place out?
“25% in, 75% rent coverage”—this is the formula using which most condominium rents are determined. Make sure that maintenance fees, property taxes, and mortgage are covered in the rent with a little bit set aside for investment and you are good to go!