How to make money with Mississauga condos

October 21, 2012 - Updated: April 18, 2014

   

   Regardless of your political beliefs and it has absolutely nothing to do with Mississauga condos, that's a funny picture and brilliant at the same time! Inevitably my clients always seem to ask me this question...how to make money on Mississauga condos.  I understand their curiosity of course.  The need for greed is always driving us; though most people don’t buy Mississauga condos for this reason.  The typical buyer really just wants a place to live.  I suspect their need to know stems from not seeing living in a condo for the long term.  In my experience there are only a handful of ways people can “make money” with Mississauga condos.

   Flipping condos is a term to describe the exercise involving buying a condo, then renovation it and selling the property for a profit.  Sounds simple right?  Not so fast…if it was, then everyone would be flipping condos.  The obstacles can be quite expensive and time consuming.  But this is what has to be done.  First a suitable condo has to be discovered that has special qualities.  This condo should be in a desirable neighborhood and be bought at a low price.  Assuming you can find such a condo, and then you have to be able to renovate it to an upper standard with as little cost as possible.  When the condo is sold, the difference from the purchase price minus all the money that was put into buying, renovating and selling it represents the profit.

    Another popular way to making money with Mississauga condos is to rent the property.  Having a tenant is a nice steady way of helping you pay off your mortgage and increase equity. To do this right means selecting the right condo at the right price and being able to attract a tenant who will pay you rent without fail.  This requires marketing the condo to get interest from potential tenants, then going through a selection process.  The wrong selection can end up costing the Landlord financially such as missed rent payments and having to deal with a law suit to recover funds or going through an eviction process.  On the other hand, if things go smoothly then getting that cheque on the first of every month will make you smile.

    The third way to make money on Mississauga condos is to invest into pre-construction condos.  Essentially, buy the pre-construction condo with the minimum payments required as a down payment, then sell the condo before you take possession.  This is called selling the Mississauga condo by assignment.  The trick here is to sell the pre-construction condo higher than what you paid for it.  Take into consideration cost to sell the condo including any assignment fees owed to the builder.  If your take home is more than the cost of selling the pre-construction condo and the original purchase price you will realize a profit.

    As a general rule the more you can do yourself the more money you can save.  Then again if you are not experienced you will probably make critical errors in judgment that will cost you money to have someone else help you fix it.  Professionals can limit their expenses and see high returns in flipping, renting or selling pre-construction because they can do many things by themselves. The novice should employ professional s to the work they cannot.  The end result might be less profit, but at least you get a profit. 

    Thanks you once again for reading my weekly blog.  Should you have any questions or would like to learn more about this topic, please contact me at email:   info@toddlee.ca.

By Todd Lee

Tagged with: how to make money with mississauga condos condo investment flipping mississauga condos renting mississauga condos pre-construction condos selling on assignment condos
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