What Makes A Good Investment Property?

What Makes A Good Investment Property?

Posted on September 5, 2017 by pmtadmin

So you’ve decided to buy an investment property. It’s a good idea. Real estate is about as solid an investment as there is these days. So, congratulations.

Of course, there are a few minor steps to get through before you can make your dream come true. And number one, of course, is deciding what the ideal property for to buy is.

There are obvious precautions to take. Check out the company building and selling the condo units. Make sure it’s reputable, has built other successful projects around town, has a reputation for meeting deadlines and quality building. If possible, talk to other owners or tenants in their buildings about their impressions. This is, of course, where a company like Toronto Property Management, with extensive connections in the condo industry, is useful. TPM can help you winnow out the pretenders from the real thing, and ensure that your purchase will be a satisfactory investment for the long-term.

But, above all, there’s one tried-and-true motto to remember to when buying real estate: Location, Location, Location. You want to be renting out a property that’s where people want to live. These days, when it comes to condos, that’s mostly downtown Toronto. Potential tenants are not only looking for a quality dwelling, they’re looking for a place that will allow them to enjoy the lifestyle they seek. That means convenient for work, close to restaurants, clubs, shops, sporting events, museums, galleries and more. And don’t forget proximity to parks or green space.

You also, naturally, have to look closely at the layout and floorplan of the proposed condo. First of all, is it functional? Is the layout well-planned for somebody looking to transition seamlessly from sleeping to watching TV to cooking to working in the den? Will your tenant be able to throw a small, but impressive cocktail party? The size of a unit is far less important here than the thought that’s gone into its design.

Consider the amenities that you’d like in a condo you were living in. How high are the ceilings? How tall are the windows? What’s the view like? Is there a balcony or terrace? Does the unit have parking for tenants and guests? Will it have a concierge or security? Will there be storage lockers for tenants?

Will the building include fully-equipped fitness facilities? One of the first things potential tenants will want to know about is whether there’s a gym with weight and aerobic equipment, a pool, a sauna etc. Most people, if they’re planning to live in a downtown condo, don’t expect to have the additional hassle of having to sign up at a local gym.

Of course, you have to look at the bottom line. How much are you hoping to make from your investment property on an annual basis? That will affect the size of the unit you buy, as well as the building you decide to invest in and its location. Find out what the market rental value of the property is. This will help you draw up your budget.

It’s also where an experienced company like Toronto Property Management, which has its finger on the pulse of market, is more than useful. We have market rental values and all the other relevant data you need to make an informed choice easily to hand. As leading experts in the industry, we know what neighbourhoods and real estate to invest in to attract the best returns.

Buying into investment property in Toronto is an excellent idea, with unlimited potential for a return on your investment. TPM can ensure that the process goes entirely smoothly for you, and that at the end, not only will you be landlord to a very satisfied tenant, but you’ll be enjoying the warm glow of a solid investment well made.