Condo Case File: Earn a 250% ROI in 2 Years
by admin on March 2, 2020
Welcome to Condo Case File: Earn a 250% ROI in 2 Years. In this insightful article I showcase how one of our condo investor clients earned an incredible 250% Return on Investment in just over two years.
Purchasing a new condominium has been one of the safest investments decisions you could have made over the last twenty years. I’ll relate it to purchasing a new Mercedes-Benz vehicle. You make the deposit with confidence and drive away with complete peace of mind.
The condo craze is still going strong in Toronto and has heat up across the GTA. Condos are becoming the new norm for investors, millennials and retirees. A turn-key solution that allows you to “stop and smell the roses” more often.
Over the years, I have sold all kinds of condominiums. From new to 50 years old, from 400 to 6000 square feet, from small town to downtown.
In this insight, I showcase an investor client of ours that reaped an incredible Return On Investment. Let’s’ call this client Joe. Through our builder network, Joe got platinum access before realtors and the public to purchase this unit. Joe was thrilled as this was an investment to help improve his family’s quality of life. Joe purchased in the first tower in a multi-tower development. In late 2017, Joe inked the deal and just over 2 years later in early 2020 Joe sold his 1 bedroom investment condo. Here are the details of Joe’s journey:
1 Bedroom Purchase Price: $375,000
Deposit: $56,250 (structured over 1.5 years)
Sale Price in early 2020: $510,000
Gross Profit: $135,000
ROI (approximate): 250%
What an incredible return right! Joe’s investment paid him over $60,000/year. Joe took advantage of the builder’s allowance of an assignment which allowed him to sell his property before taking possession. A free or low cost assignment option has become the norm in the marketplace by builders. Joe could have very well rented his condo unit for years to come and watch it appreciate even more, but he has intentions of taking his handsome profits and investing them elsewhere.
You might be thinking that $510,000 is expensive for a 1 bedroom condos, well in 2017 Joe thought $375,000 was expensive also. Which is why “you don’t wait to buy real estate, you buy real estate and wait”. Joe could have invested his money to earn a few percent interest in a GIC or risk it in the stock market. But, he decided wisely and took advantage of the leverage that real estate investments offer. This is one of many cases where our team has helped improve the life of a family through providing opportunities and expertise. If you want to learn how to invest like Joe, click here to book a private consultation with us today.
