Thinking about buying a new condo as an investment? Read on to learn some common mistakes that you may want to avoid.
If you’re considering renting out your new condo, do everything in your power to ensure you’re handing over the keys to a good tenant you can trust. A new condo is a big investment after all, and the point is to make money – not spend it on needless repairs. Vet the applicants to the best of your ability through credit checks, quality references (preferably from past landlords – not just friends or family), and by meeting them in person. It’s a good idea to draft a comprehensive lease agreement that covers for damages, and to request proof of contents insurance prior to allowing renters to move in. Finally, take pictures of the condo unit before granting possession to your tenant so there will be no disagreement in the future on the initial condition of the condo. Source: ClaridgeHomes.com
Not Checking Insurance Documents
Not checking insurance documents for flood and windstorm coverage, and whether or not the premiums are financed or paid in full. Inadequate insurance could be costly, and not having enough reserves to pay the insurance premiums can also be very costly. Source: RealtyTimes.com
Over upgrading is a very common mistake made by amateurs, and one that can be costly. Developers have tried to spearhead this problem by providing palettes, but owners still make this mistake. Over upgrading to your tastes may not be reflected in the market value of the property and likely, do not appeal to the masses. By default, this decreases your buyer pool and demand for the product. Source: TheGlobeAndMail.com
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Gary Wong, MBA
2105 West 38th Avenue,
Office Phone: 604-263-1911