On Monday, Sarah and I closed on an ‘investment-grade’ condominium in North Waterloo. There were some mild theatrics associated with the closing (i.e. where was the other side’s lawyer on Friday when we were to close the deal? Canoing ? Lawn bowling ? Enjoying a lazy Friday afternoon at Morty’s ?) but all is well that ends well – at least in this case.
When I say ‘investment-grade’ condo, I am referring to a handful of condominiums in town – buildings with good management, low prices, good rent, great location, modern wiring (and no aluminum!) & plumbing, healthy reserve funds etc. They can be managed for a very reasonable rate, and the annual maintenance and repair you will put into the unit are minimal. One Millonaire Real Estate Investor I know who owns many of these units said ‘The only time I’m there is Jan 1 when I go to pick up 12 rent cheques.’
These units Condominiums, semi-detached homes and townhouses have appreciated approximately 8% in the past 12 months (May 2006-May 2007, as provided by the Kitchener Waterloo Real Estate Board), and have shown very good appreciation over the past 10 years.
Our unit sold for $120,500, and will rent for between $850-950/mo + hydro depending on the polish we put on the place (we’re redoing the floors [today actually], refreshing the kitchen and bathrooms, new appliances etc.) Condo fees are $215 a month, and taxes are about $110 a month. Our mortgage, @5.89% with 20% down, is about $500 a month, and we’re paying it in biweekly (accelerated) instalments.
I have clients, colleagues and friends who have bought these units with less than 20% down – your mortgage costs will be higher and your cash flow will be correspondingly lower.
These condos (and there are a couple on the market [and a great one off market, but available to my clients] that I can show you) are a great way to get in on the real estate market, and start growing your wealth through smart investing!
Benjamin Bach is a Sales Representative with Keller Williams Golden Triangle Realty in Kitchener Waterloo. He is passionate about helping his clients build wealth, and has recently been nominated (by the readers of the KW Record) as one of Kitchener Waterloo’s Favourite Realtors!
If you are interested in how you can start your Real Estate Investment portfolio, have any questions about buying or selling a rental, income or investment property in the Waterloo Region, or are looking for a tip on a great book to read, please email Benjamin at (benjamin(AT)benjaminbach.com) or call him at 519 570 4447.