6 reasons why I will invest in a condo in Montreal this year
So you have money in your bank account but you don’t know what do with it or you are thinking of investing but you don’t know where to put your money.
Options comes to you with stock market, real estate and you might end up doing nothing because you want everything to be perfect.
If investing in a condo has always been something you thought about, here are my 5 reasons why I will invest in a condo this year :
1. I like the leverage
Leverage is the only thing that makes condo and real estate investment different than the stock market. If you buy 50K of stock options, you will own 50K value of stock options or mutual fund. If it goes up to 10%, you will make 5K as gross profit.
If you put 50K as down payment of a condo worth 250K (considering 20 % down payment), you will own a 250K compare to 50K. If it goes up to 10%, you will make 25K as gross profit.
The truth is you will will make more than 25K profit because you have to consider the fact that your mortgage balance decreased and that you might has a recurrent monthly cash-flow if you rented your condo.
2. I like to control my investments
When you put 50K into RRSP, you hope that the fund or whatever will increase in value. you are there to push the sales or do anything that can impact the value of the fund.
When you own your condo, you have 100 % control of your income and expenses. You first can rent it, enjoy it by living in or sell at your convenience. Secondly, you can control your rental income by renting it furnished or doing short term-rental (as long as it is allowed in the building).
It is important to understand the difference between hope (speculation) and control (investing)
3. I practice what I say
I love real estate, I see real estate as an asset and I own myself a condo as investment. By this, I want to be the kind of person who practices what I preach.
In fact, in the past few years, I spoke to many “financial advisors” who were giving advices on mutual funds or stock, great. However, the worst is when someone does the opposite as what they say.
It does not make sense for me to listen to someone who does not apply his own advices. If you need an investment advise or real estate broker, please ask him what he does for himself first.
4. I do not listen to “others”
The truth is that everything you read about Montreal condo market is wrong and true.
If you talk to 10 different persons you will have 10 different answers, so if you talk to 10 people who lose money on real estate you will probably hear run away from the Montreal condo market. However, if you talk to 10 successful investors, they will probably tell you that life is great and will guide you to the great opportunities.
Be smarter than others by doing your homework and go talk to the right person.
5. I do not time the market
People usually wait that the market is right to do something. I have a bad news but there is never better time than today. And if you know this kind of mindset, they actually never invest in something in their life and they won’t probably change in the futur. In this case, you should not listen to them if you really want to invest and make money.
Waiting for something to make the market perfect is an endless game. I personally accept that I could have some issues with my portfolio but I will still be able to sleep if the value of my condo decrease as long as my monthly rent covers all the expenses.
6. I always drink a half full glass
Montreal is the second biggest economic pole and have the biggest student community in North America, this city has huge potential for growth. Whether the market is going up or down, it does not not matter because you will always find great real estate investment opportunities everywhere.
Just have a plan and follow it because when you follow the path laid by those who have come before you, it is way easier than re-invent the wheel.
If you don’t have a plan or don’t have enough knowledge about investment, condo or Montreal. You can go to any specialized realtor who someone who works successfully in the field. you can also contact us here.
PS: I actually just reserved an unit for myself at Le Peterson.