Cash flow
The benefits of buying condos depends upon your exit strategy is and how far off it is in the future.
Rental market is tight
The Quebec rental market has very high occupancy rate – currently at 98 per cent.
Appreciation
Banks estimate an average 2 per cent growth in the value of real estate properties year over year. At times this may be considerably higher. That said, appreciation is in no way guaranteed in the short term.
Ultimately property appreciates in value but should be considered the icing on the cake and never expected at a particular point.
In practical terms, this means flexibility in when you exit can be important.
Loan Amortization
Amortization covers your terms for paying back the mortgage
The object of this investment is to pay the mortgage using other people’s money. In doing so, you’ll build equity in a property without spending your own money.
Good for Owners
The management company can handle all of the face-to-face interactions with the tenants as well as the collections and payments.
Passive Income
Once the mortgage is paid off the condo will earn money for you. With the help of a property manager to oversee the day to day running of the property, the condo itself will pay dividends, headache free.