2 type of condo investors in Montreal condo market
Like me, you probably have many friends and family who wants to invest in real estate or buy an investment condo in Montreal but most never actually buy anything yet. If so, I’m convinced you agree that there are two types of investors in the investment condo market in Montreal and everywhere: the players and the spectators.
In fact, buying a piece of real estate already takes guts but buying pre-construction condo takes guts, vision and money. The reality is that this game or business is not for everyone. The one who plays it well accumulate wealth and assets, and the one who are perfectionists or have a lack of vision won’t have access to any capital and will continue to wait, wait and wait.
The successful condo investor-player who play
- They are leaders and do what others people don’t. Most of Montreal condo market news published there are too many condos in Montreal and most of the people do not end up buying anything. Successful condo investors are doing their due diligence and make money when others don’t in the same market conditions by not listening the typical “there are too many condos downtown”.
- They are risk takers and make it happen. They embrace the risk and understand that security = 1% at the bank versus buying the right pre-construction condo can give you an average 12% ROI including capital paid down. Also, people always asks me the same question when I present our investments or a condo project: “how would you know for sure that this condo will be rented“. I end up resulting the same answer : that I was not sure at 100% but the only thing I was sure at the purchase time is that I will make any efforts it takes to rent it at the market price.
- They treat it as a business. If they do not have an entrepreneurial mindset at least they think like a business person thinking that profit is a combination of time, effort and money in.
- They are disciplined and numbers-oriented. Before searching a condo investment they make sure that they know what they want. They don’t consider every condo development just because it has a great marketing campaign or everyone loves it. They always make a rational decision and can buy a condo even if there is no city or lake view.
- They have money. They only negotiate a deal when they know they can deposit the conventional 20% deposit. Successful condo investors who have done well in the market are getting richer by accumulating their wealth.
In contrast for this successful condo investor, we also know some who are trapped into the “negative mindset thinking”.
The condo investor spectator who watch others
- They listen to the wrong advice. As the opposite of the investors, they will remember the bad example or only listen to the negative news. They will actually never meet people who had success in their condo investment to know how they did it.
- They want security. They always think the developers will run with their money or that the market will crash. Right, if you want to stay in your comfort zone stay with the bank at 1% (eventually losing money).
- They don’t take condo investment as a business. They always say ” I won’t live in so nobody will”. Investors do not care “really” about the view, the size as long as the numbers are right. They also see the condo as an asset to grow their wealth.
- They do not know what they are looking for. This happen for the would-be investor because they do not take the right advice resulting that they always wonder if they should buy old or new, which area or neighbourhood.
- They dream about the perfect condo investment. As the opposite of the last point, they actually want a brand new 2 bedroom condo including parking and close to subway or universities for less than 265K. Yes you could probably find it but the question is when. Investors understand that time is money but also where the market is today and will go in the next 5, 10, 20 years.
Most of this can be changed and some of these actually happens to everyone. If there is one thing to remember, I would recommend that you contact someone with successful experience.
I would love to hear about your toughts and comments here. And if you are successful investor or want to become one, do not hesitate to contact me.