Advantages of Hiring a Consultant who can guide in investing in a condominium

VPS Solution & Consultants are great way to have a professional who can guide you make a better decision.  Time and space condo in Toronto is one project promoted by VPS Condominium, commonly called a condo is a building complex which has a number of apartments with many facilities. These facilities are shared by the people living in the entire building complex. With the real estate industry booming, investing in condos is the safest bet. With the quality of life it offers, people prefer condos more and more. Since, condo payments are available at pretty flexible rates; even young buyers are investing in buying condos.

Advantages of condos:

Access to first class amenities at a very low cost:

Every person dreams of living in a place that offers the best amenities and a luxurious living. Although many of us dream of this, but very few can achieve this dream. With condo living this is possible. Since, basic amenities offered with condo units are shared among all the residents of the complex, the cost of these amenities becomes very less and quite affordable. It is usually just the association fees you are required to pay.

High resale value.

Condos have always been the safest bet in real estate investment. It is mostly a win-win situation for the investor. Its value never dips. It increases with inflation. It also increases when the amenities are added or improved. And, it increases according to the location and its overall appeal. Investing wisely in a condo is a sure shot way to welcome huge profits.

Convenient and affordable

Condos are usually designed keeping in mind the comfort of the residents. Usually new developments are being made in locations that are near schools, transit units and malls. This makes investing in a condo quite affordable and convenient rather than renting out an apartment that is far from the basics of life.

Low initial costs

For a new buyer or someone who is young and ambitious, investing in a condo is very easy. Usually a very low down payment cost is required with a convenient payment plan. This enables people to own a condo without any financial hassle.

Condos as workplace

Condos are becoming a workplace for a number of small businesses. Owing to the low initial cost and minimal maintenance costs, condos are ideal for business use. Moreover, condos are usually situated in the hub of the city. This again makes them an ideal choice.

Condos are a welcoming change for the modern lifestyle. It has moved us towards a convenient and better lifestyle.

The Most Essential Factors For Investing In Real Estate

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Compared with other types of investments, real estate investing involves a relatively positive risk/reward profile, but with relatively low liquidity (ease of entry and exit). Let’s see several of the most important factors to be considered for investing in real estate. One good project great for investment coming to Mississauga by world renowned builder pinnacle is Perla Tower which is launching this week.

  1. Location of the Property

image-blog-postWhy is it significant? The age old punch line Location, Location, Location still rules and remains the most important factor for effectiveness in real estate investment. Nearness to amenities, peaceful conforming areas, neighborhood status, scenic views, etc. are main factors for residential property valuations; while proximity to markets, warehouses, transport hubs, freeways, tax-exempt areas, etc. play a significant role for commercial property valuations.

What to look for? A mid-to-long term view, about how the area is expected to evolve over the investment period. Today’s peaceful open land at the back of a residential building might be developed into a noisy manufacturing facility in future, making the residential valuations less gainful. It is advisable to conduct thorough check about ownership, type and intended usage of neighboring areas, establishments and free ground in the locality.

  1. Valuation of the Property

tampa-florida-real-estate-investment-coaching-icon-imageWhy is it significant? Real estate financing during buy, listing price during sale, investment analysis, insurance premium and taxation – all depend on Real estate assessment.

What to look for? Commonly used Valuation Methodologies include:

  • Sales comparison approach: Current comparable sales of properties with similar characteristics –most common and appropriate for both new & old properties
  • Cost Approach: All cost summation minus depreciation – suitable for new creation
  • Income approach: Based on expected money inflows – suitable for rentals

III. Investment Purpose & Investment Horizon:

Why is it significant? Given the low liquidity and high value investment in real estate, lacking clarity on purpose can lead to unexpected results including financial distress, especially if the investment is mortgaged.

What to look for? Recognize which of the following broad categories suits your purpose and prepare yourself accordingly:

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  • Buy & Self-use: Savings on rentals, advantage of self-utilization and value appreciation
  • Buy & Lease: Regular Income & long term value approval. Requires structure a temperament of being a landlord – for handling possible disputes & legal issues, managing tenants, repair work, etc.
  • Purchase & Sell (Short Term): Quick, small to mediocre profit – usually buying under building properties and selling slightly high once ready
  • Buy & Sell (Long Term): Large intrinsic value approval over long period of time; solution for long term aims like retirement planning, child’s education, etc.
  1. Expected Cash Flows & Income Opportunities:

Why is it important? The investment purpose & usage influences cash flows and hence profit opportunities.

What to seem for? Develop draft projections for the following modes of income & expenses:

  • Probable cash flow from rental income – Inflation favors landlords for rental income
  • Expected increase in intrinsic importance due to long term price appreciation
  • Benefits of depreciation (and available tax benefits)
  • Cost benefit analysis of renovation before sale to get superior price
  • Cost advantage analysis of mortgaged loans vs value appreciation