Income Replacement for Medical Professionals – The Art of the Flip
Savvy medical professionals stand to make a tidy retirement income by trading their scrubs for a condo speculator’s fedora. This type of lucrative retirement income doesn’t require an MBA – all you need is some start-up capital and a good eye for property that will be coveted.
Toronto’s condo market is hot and shows no signs of abating. With millions of dollars of construction in the works and even more in the planning stages, it’s not uncommon for investors to end up with a positive cash flow after buying early and flipping or renting a unit.
Indeed, one of the most popular ways for a speculator to make money is to buy a condo and rent or resell it for a higher price. In order to be profitable, the rent needs to be higher than the mortgage interest, taxes, condo fees and resale costs. An increase in property value over time also puts money in the investor’s pocket.
But the best investment might well be pre-construction purchases. Prices typically climb as completion nears and similar units sell out. Investors looking to resell a condo quickly can bank on paying a discounted price early in the pre-construction sales cycle and reselling the unit soon after closing at a much higher price.
Some tips to remember as you jump into the market are:
Buy low and sell high. Avoid buying real estate at market value. Buy new developments as early as possible. If you can, get on the insider investor list or attend brokers’ opening nights. It’ll save you thousands of dollars.
Look for projects with 200 or more units. Smaller buildings can have high maintenance fees since they carry large fixed amenities costs and are divided by a small number of residents. Reserve funds with large buildings will have larger pools, safeguarding the tenants from extreme expenses.
Look for buildings with great amenities, such as a rooftop patio, garden, waterfall, movie room, party room, gym, pool, billiards room, etc. Luxury amenities add to the appeal of any unit, making them easy to rent and re-sell.
Snatch up the best floor plan available. Every building has premium and more average plans. Learn how to read them and pick the best ones in each project.
Get advice. If you find yourself juggling several options, find an expert to help you resolve the issues that are holding you back from making a clear choice. A real estate investment specialist will have the experience to help you find the most qualifying investments and can also get you to the front of the line.
