6 Condo Investment Tips for the Best Returns

With a seemingly non-existent price ceiling in today’s condo market, the prospect of snapping up a unit or even multiple is very attractive. Of course, there’s no guarantee that prices will continue to rise, although we’re unlikely to see any sharp declines, and will more likely see prices stabilize. This means that a condo remains a solid investment, but it’s far from an easy money-maker. If you want to ensure a decent return on your investment down the road, you need to make some wise decisions when purchasing your unit.

Check out our top condo investment tips to help you make a profitable choice.

Also, don’t forget to browse our guides for some of the best Etobicoke condos!

Tip 1. Look for Waterfront Views

A waterfront view is first and foremost stunning. There’s nothing like gazing out of a window or from a terrace and watching the calm, glistening lake below.

But it means more than that. Waterfront is limited and therefore precious, so as condos are built deeper in cites, the waterfront buildings become even rarer. What’s more, when you have a waterfront view from a building at the water’s edge, you know that no buildings can be placed in front of it.

All of these factors combined help to protect your long-term investment.

Tip 2. Try to Get at Least Two Bedrooms and Two Bathrooms

When looking at investment units, buyers will often look for two bedrooms, but compromise when it comes to bathrooms. Two plus two is so much better in investment terms as it means that two people (or couples or families) could feasibly share the unit, providing two sources of income.

It also means you could live in the unit — or at least keep one of the bedrooms and bathrooms as your own — while renting out the other bedroom and bathroom to a friend. Both of these situations become far less feasible when you lack that second bathroom.

Tip 3. Look for Parking and Storage

Many condo-dwellers don’t need a parking spot simply because they don’t have a car. However, buying a unit with a parking spot is a good idea for several reasons.

• Many people do still have cars, even if they don’t use them that often. For example, downsizers probably won’t be ready to part with their car completely.
• If your renter doesn’t need the spot, you can always rent it out separately. There are tons of renting couples and families that have multiple cars and only one parking space with their own unit, so renting yours out should be easy.
• With so few parking spots and so many people, it can be very difficult (expensive) to buy a space after the fact, so purchasing one with the unit is a good choice.

And who doesn’t need storage? With condos getting smaller, renters will be looking for that extra space. If it works out, you can even use it as a little extra storage too.

Tip 4. Consider Proximity to Transit

Condos are all about convenience — maintenance-free city living with plenty of amenities close by. So it’s no surprise that renters are also looking for convenient transportation options. Whether it’s downsizers who want to ditch their car on weekends or young professionals commuting to city jobs, access to transit will be key.

If you’re renting out your Etobicoke condo in the short term, proximity to transit means you’ll have more interest from renters and can even charge a higher price. Plus, the unit will be easier to sell if you end up doing so down the road.

Tip 5. Look for Nearby Amenities

Along the same lines, since many condo owners are commuting and don’t have use of a car, ideally there should be easy access to shops nearby. After all, no one likes walking for half an hour with grocery bags digging into their hands.

It’s a bonus if there also other amenities such as restaurants, liquor stores, and dry cleaners close by. If you want some more neighbourhood information check out our South Etobicoke neighbourhood guides.

Tip 6. Don’t Rule Out a Fixer Upper

With so many shiny new condos for sale or under construction, it can be tempting to simply rule out older units. However, there can be lots of advantages of buying a unit that needs a little TLC. Here are just a few:

• A community feel: Older buildings tend to have more long-term residents, which is great for attracting long-term renters who are looking for a sense of community.
• Less damage concern: Renters are typically paying for the space and location more so than the finishings, so an older unit can often be easily spruced up to the point where it’s suitable for lease. This means you don’t have to invest as much money upfront and won’t need to worry so much about damaged appliances and dings in the wall.
• More space: Older buildings often have larger units, so you’ll be able to charge more rent and will have an easier time when it comes to selling in the future.

Depending on how old a building is and the amenities it has, it could have higher or lower maintenance fees, so be sure to take these into consideration too.

Do you need help with deciding which is the best investment property for you or simply have some questions on the topic? Your ThompsonSells team is always happy to help!