What exactly are the benefits of renting out a condominium as an investment property? Is a rental property apartment a good investment?
Well, that will depend on the marketplace you can be found in. Lets say, if you are enthusiastic about renting out a cash flow property in Central Toronto or Downtown, you may be better renting out a condo Apartment. Just what exactly are the benefits associated with renting out your condo?
In this specific article we’ll review all the benefits associated with renting your property with an entire set of both Benefits and drawbacks that renting out a condo might have for a real estate investor.
It goes without saying that financial stability works wonders for you in virtually all areas of your life. There’s a myriad of ways to be financially stable, with each having their own benefits and drawbacks that you should look out for. One secure and possible way is owning rental properties. A property realtor, knowing the intricacies of the business enterprise, can facilitate the procedure of owning a rental property. That’s where we can give you a hand.
Pros of Renting Out Your Condo with Bangkok interior design tips
Toronto is riffed with investment opportunities, among which, buying rental properties is the safest one for clear reasons just like a regular flow of income. You will discover, however, a few pros that folks don’t know about and as a result, hesitate to begin purchasing a property and rent it out. We, as your trusted condominium REALTORs, suggest the next features of renting out a property to make you certain of your decision.
1. Inflation rate rising, you can counter this by investing in condos, their value in Toronto in the past have exceeded the inflation rate. This implies granting you a lucrative investment, over Bonds or Mutual funds or some stocks. You can view this trend if you go through the TREB’s average condominium price trend since 1996 up to the date that article has been written. There have been fluctuations in the average price and sales, yet by looking at the broader picture and comparing average inflation rate to average condo price appreciation in Toronto you start to see the delta between those two numbers, that the condominium owners has been way prior to the inflations.
Downtown Toronto Condos Average Price Trend
2.Toronto is filled up with renters and condos took the spotlight, therefore, you should have a fairly easy time renting out your condo (Days on the Market changes with regards to the location).
If you look at the increase in population statistics, you’ll have an improved idea of how the current demand would upsurge in the future years.
Every year over 115,000 people on average come to the higher Toronto Area and that number has been increased over the time.
3.Maintaining and upgrading your condo increase its value, such as repainting, refinishing. In most cases, refinishing and upgrading a property is cheaper when compared to a house, because so many upgrades that are outside of your units, e.g. roof, landscaping etc, would be achieved by the property corp.
4.Renting out your condominium includes tax benefits. By the guidelines of The Canada Revenue Agency, you can deduct expenses related to your rental property in these categories: necessary expenses, improvements, depreciation (if any), the eye portion of the mortgage, maintenance fees, etc. *
5.The Condo Management manages most of the management and maintenance problems, which means you won’t be bogged down by such hassles. Condo property managers are a huge relief as it pertains to addressing the building maintenance. That’s one of the reasons people opt to rent out a property over a residence.
6.The Condo Management also handles common areas and amenities like courtyards and swimming pools and they are the ones who address issues, or repair and keep maintaining those areas.
Condos generally appreciate in value for a price which is usually greater than the inflation rate
Getting a renter for a condominium is not too difficult in a favorite downtown area
As the landlord, you will see minimal maintenance and upkeep as much of the management and maintenance problems are usually handled by the Condo Association
Common areas and amenities, such as pools, tennis courts and courtyards are usually fully maintained by the Condo Association