Nov 2006 01

 

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 So I was just down at the Folio condos in the Financial district today taking pictures for a 2 bedroom rental, one of the few that I have available in there (if you would like more info please contact me or view our companies luxury rental page) and I realized how convenient of an area this is to live in and how much better it will be in few years when a more of the new projects coming on line are completed.

What is great about the situation we are in right now is that a lot of these projects (i.e. 45 Province, Avenir, etc.) are 1-3 years from being completed but you can reserve yours now.

For example, 45 Province is 30 months from completion but you can reserve any of their units for as little as 5% down.  The benefit to this is that you are reserving a unit at 2006 prices and not paying until 2009.  This particular project is pre-selling units at around $900/sq. ft.  The developer recently said that he wouldn’t be suprised to see prices go up to close to $1600/sq. ft. by the time this project is complete.  This allows for almost 3 years of appreciation without having the carrying costs associated with other investments (i.e. mortgage payments, taxes, condo fee, insurance).

After completion you have a few options as well:

  1. Keep the property for yourself and have that built in equity at your disposal.
  2. Rent the property and continue building equity and maybe even some cashflow.
  3. Flip the property at market value and cashout your profit.

Even during an average real estate market, you can expect around a 3-5% appreciation rate.  You can do the math and see how great of a ROI this could be.

For more information on these types of investments or many others, please feel free to contact me!

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