3 Keys to Making a Great Condo Investment

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In the world of new condos, there are hundreds of options.  Every year we have dozens of new launches and it can be daunting to look through and find the best projects to invest.

The truth is, there are only a handful of truly “GREAT” projects and investments every year, and our job, as new condo advisors is to help our clients sift through the many options to help you find the best projects to park your hard earned money.

A great investment must have three things; a great developer, an amazing location, and incredible value.  If even one of those is missing, you should be asking yourself twice whether you’re making the right choice.

The three keys to investing in a new condominium. It is important to have all three: A Great Developer, An Amazing Location and Incredible Value. Even if one is missing, you should think twice
The three keys to investing in a new condominium. It is important to have all three: A Great Developer, An Amazing Location and Incredible Value. Even if one is missing, you should think twice (Click to enlarge)

1. DEVELOPER – Always buy from a reputable developer

Buying from a reputable developer is vital.  A good developer will build what they say they are going to build, but most importantly; will be by your side if there are any issues once the project is complete.

There are dozens of horror stories from bad builders ranging from:

  • Your individual suite not finished up to par and the developer is slow to remedy the situation
  • Amenities not finished in a timely manner (thus bringing down potential rents and value at the time when you need to rent or sell)
  • Not being responsive to any issues that you might have and lacking good communication with the buyers

This is really where you separate the good from the bad.  A good developer is there by your side every step of the way.

Some examples of great developers are:

  • Tridel
  • Great Gulf Homes
  • Canderel
  • Daniels
  • Lifetime Developments
  • CentreCourt Developments
  • Menkes
  • Freed Developments

2. LOCATION – Always buy in a location with potential

Buying in a great location is very subjective – but it is important to remember that when you invest in a condominium, you are investing in a LIFESTYLE.  There are certain things that buyers and tenants are looking for which determine which are bad, good and great locations.

A great condominium location will have:

  • Conveniences (tip: Look at the WalkScore!) – a great condo location should be quickly accessible to things such as Grocery Stores (a grocery store in the building itself is a HUGE bonus!), Restaurants, Cafe’s, Drug Stores, Parks and much more.
  • Quick Access to Transit – City dwellers are dropping the car more and more.  Quick access to key transit lines is a huge bonus.
  • Quick Access to Jobs – many people are now looking to live closer to work and ditching the commute.  Locations nearby major employment hubs can be great investments (Financial District, Hospitals, Universities etc.)
  • Investments to make the neighbourhoods better – this one can be tricky to research, however, look at where the Government is investing their money to improve infrastructure (example, brand new Eglinton Subway Line), new areas to gentrify (example, West Don Lands, Regent Park, East Bay Front, Yonge & Eglinton are all undergoing huge investments and change) and areas that are getting new employment (example, the new Don Lands Financial District is currently in the works)

There are of course, areas that marry all of these items together and have conveniences, quick access to transit and jobs and also have huge investments in place to improve the neighbourhoods.  Some examples are:

3. VALUE – Always know your numbers

So you’ve picked a great developer and location, and now you need to know your numbers.  A great developer and great location, but an overpriced project will still lead to a horrible investment.

  • Buy at the right time – understand the Condo Launch Life Cycle to get the best deal
  • Work with a Platinum Condo Agent (hint, TalkCondo) that works closely with the developers to get you access to the best deals
  • Run your rental numbers – do you cash flow positive, neutral or negative?
  • Is there potential for the condo value to grow?
  • Is there potential for the rental market to grow?

Our team works with investors to help you select and get access to the best condo investments.  To get these investments delivered right to your inbox, simply join our Insiders Club by completing the form below

Roy Bhandari