Video Blog – Michael Duggal - Are Toronto Condos A Good Investment?
Monday Jun 24th, 2019Share
Are you buying a condo as an investment? If so, how can you evaluate if a condo is a good investment? There are several calculations you can go through, and questions to address.
When considering a condo as an investment, you must estimate:
- The annual rent you may receive, and
- The annual expenses you will incur, including such things as:
- Property taxes
- Maintenance fees
- Utility bills
In addition, you have to factor in the occasional expenses you may occur, such as:
- Vacancy expenses
- Increases in maintenance fees
- Repair costs if a tenant damages the property
I will as well discuss the importance of reviewing a status certificate. The status certificate is a document that provides basic and essential information concerning the financial status of a unit and the condo corporation. Its focus is to inform a prospective owner of the reserve fund and any large increase that is going to come into effect, of any special assessment that is being contemplated by the board, and any arrears or lien that a particular unit might have.