Buying an Investment Condo? 4 things to look for!
A friend of mine had called me some time ago, and asked me to give him a Market Evaluation on his investment property in #Winnipeg. Turns out he had purchased a small condo about a year before, and had done so ‘privately’, without the use of a real estate agent, a decision he now regretted for several reasons. As we were talking about his investment property , my mind went over the top features any investor should be looking for when purchasing a condominium.
1Location, Location, Location
You’ve heard this before. The top three most important things in #realestate are….well, you know. Its no different when purchasing an investment #condo, or a condo for your own personal use. Will it be easy to resell, or does the location hamper your re-sale efforts? If you’re going to rent it out, is the condo located near public transportation routes? Is the neighbourhood safe? Many factors come into play.
— VIP Condo Brokers (@VIPcondobroker) December 22, 2016
Parking, especially in central locations such as downtown, is always at a premium. Even if you are lucky enough to rent out your investment property to someone who does not drive their own vehicle, reselling a condo without its own parking spot is more difficult.
With several apartment-to-condo conversions underway, it’s easy to forget that a balcony is still one of the most important features requested by buyers. Without a spot to sit outside, perhaps read a book in the fresh air or throw some beef on the ‘que, owners and renters will feel trapped inside their condo. Make sure your investment condo has a balcony or, if located on the main floor, it has a patio space.
Less important with single men, but in-suite laundry is almost ‘vital’ to female condo buyers and renters. Having a secure place to do your own laundry is, at the very least, a ‘nice to have’ feature. Sometimes, a condo which has no in-suite laundry is at least able to add this feature later on, so you may want to check into this possibility.
The above 4 features are perhaps the most important ones to consider. Depending on your price range, you may want to consider several more:
5Bonus: Concrete Building
Usually a little more expensive, but well worth the price. Quieter, more solid and stable, an investment property with concrete floors and walls will also make for easier resale.
6Bonus: Central Air
Central air conditioning and heating is another nice-to-have feature, making the condo more comfortable and easier to rent out.
7Bonus: Secure Parking
Especially with our winter climate, having underground or indoor parking is an often-requested feature, albeit at a price premium
Back to my friend: His private purchase ended up being a very poor deal, as his investment condo had NONE of these features. Located in a rough part of town, no parking spot, no balcony, no in-suite laundry and on the 3rd floor with no elevator will make this a very tough sale, even in a hot market.
Moral of the story: If you’re going to invest some serious money into real estate, call a real estate agent BEFORE you plunk down the cash. I would much rather guide you in the right direction, than try to help correct a mistake already made.
If you’re thinking of buying an investment property, call me first.
Bo at 204-333-2202