- Joined
- Feb 12, 2010
- Messages
- 5
I`m new to the property investment world. I live overseas and wanted to invest my money in real estate. I choose a pre-construction condo in the downtown core of Toronto. I think that I paid a fair price at 665 square feet for a 1 and 1/2 bath, balcony, walk-in closet etc. in a building that has all the bells and whistles for renters. FYI I paid 298K making it $448 per square feet. All of the `homework` that I did around the area had nothing below $500 per s/f and the area is rapidly improving...i.e. just by the market, East of Younge for those of you from T.O.. Rent in the area is averaging 1600 without a half bath or parking. As I said, I live over sees and don`t have a lot of time...no time in fact to be `Johnny on the spot` if something goes wrong. So I went with a new build, with a well known company, so that the flat would be somewhat trouble free and a property manager wouldn`t have a lot of trouble. Also, I don`t need the place to live in so delays in construction don`t eat at me too much.
This was my first move and I thought I had done well until reading Don Campell`s book `Real Estate Investing in Canada`!!! Don`t get me wrong it`s a decent read (if you like RE books) and the formula makes sense. Also, Don clearly has Billion times more experience than I do so I do respect his opinion...plus I liked his spot on `The Hour`...and even wish I had the `Richard experience`.
However, I ran the numbers for almost every single pre-construction condo in the Toronto core and none came even close to being able to operate in the black or score an 8+ with Don`s initial formulas.
Can anyone put my mind at ease and tell me there is something different for pre-construction or new condos, and that you don`t have to operate at a profit at the start for it to be successful!!!
Kind regards,
C
This was my first move and I thought I had done well until reading Don Campell`s book `Real Estate Investing in Canada`!!! Don`t get me wrong it`s a decent read (if you like RE books) and the formula makes sense. Also, Don clearly has Billion times more experience than I do so I do respect his opinion...plus I liked his spot on `The Hour`...and even wish I had the `Richard experience`.
However, I ran the numbers for almost every single pre-construction condo in the Toronto core and none came even close to being able to operate in the black or score an 8+ with Don`s initial formulas.
Can anyone put my mind at ease and tell me there is something different for pre-construction or new condos, and that you don`t have to operate at a profit at the start for it to be successful!!!
Kind regards,
C