From the Inside Flap
Is buying a pre-construction condominium a wise investment? From day to day, you will find differing opinions expressed in the press, on the Web, and on investment shows on radio and TV. There seem to be so many cautionary tales and factors to consider, from location and builder reputation to the economics of the deal. Although there are many differing opinions in the media and elsewhere, there is help to decipher all of these messages into facts and create a strategy. Investing in Condominiums
is designed to help investors make informed decisions about buying a pre-construction condominium and understand the options surrounding an exit strategy.
As with any investment, you need to look beyond the hype—the slick marketing campaigns that developers use to entice customers. The investment model in this book is based on tried and true fundamentals and can be applied in any city and neighbourhood across Canada. You need to know the risks and the benefits, and realize that buying a condo is a more complex process than buying a freehold property. Condos involve a lot of the same fundamentals as freehold properties, but include other pieces of the investment puzzle including urban architecture, condominium law, and much more.
To meet that need, Brian Persaud and Randy Ramadhin rolled up their sleeves to do in-depth research and comparative analysis of markets and their trends, and of individual developments and buildings. You will learn about the key aspects of lifestyle amenities, architecture, and construction quality. There is comprehensive information on the purchase agreement, with examples of clauses that strongly suggest that legal due diligence is a must. In addition, the authors interviewed top brokers, realtors, property managers, and investors to provide you with an insider's perspective on condos and their viability as an investment.
A number of investment strategies are discussed, from flipping your investment and buy-and-hold, to joint ventures and bulk buying. Regardless of the strategy you choose, you need to make an investment in time to understand the economics of buying a pre-construction condo. Investing in Condominiums is an essential guide to building that knowledge.
From the Back Cover
Lots of information has been published for those who wish to buy a new condo (known as a strata in BC) as a principal residence. With regard to investing in condos, there is an unfortunate perception that it is all about lining up to buy pre-construction units in a "hot neighbourhood" and flip them. Of course, people ignore market conditions and fundamentals, and get caught up in a kind of mass hysteria for which they will often pay a price down the road.
Condos represent a solid return on investment when purchased according to a strategy, by sticking to fundamentals, by carrying out proper due diligence, and by having an exit plan. The purchase of pre-construction condominiums is just as relevant in a real estate portfolio as owning freehold property. As well, benefits from the vantage point of tax and estate planning can also be realized. Until now, there has not been a comprehensive treatment of how to invest properly in pre-construction high-rise condos.
This book will give investors the nuts and bolts of undertaking such an investment. They will have the knowledge to proceed in a methodical way, with confidence, knowing they are asking the right questions, doing the math, and assembling the right team of experts.
Praise for INVESTING IN CONDOMINIUMS
"I teach people how to create a millionaire mind. This book is a perfect addition to teach you how wealthy real estate investors invest in condominiums, and the critical secrets to know before putting a dime in real estate."
—T. Harv Eker, author of #1 NY Times Bestseller Secrets of the Millionaire Mind
"A tried-and-true strategy that teaches buyers how to safely purchase condominiums by conducting deep due diligence and market research to ensure the fundamentals and building financials are strong and sustainable. Brian Persaud and Randy Ramadhin show you exactly how to do your homework in a market that is often more emotional than it needs to be."
—Don R. Campbell, author of the bestselling Real Estate Investing in Canada 2.0 and Secrets of the Canadian Real Estate Cycle
"You must read this book to understand what wealthy real estate investors are looking at investing in condominiums. Brian and Randy have developed a very comprehensive book on factors that you should consider before putting a dime in real estate."
—Robert Shemin, New York Times best-selling author of How Come that Idiot's Rich and I'm Not?
"This book provides you with in-depth knowledge about purchasing a condo as an investment. From market economics to a builder's reputation, and the financial and legal aspects of buying a condo, there is no better source of unbiased information to assist with your buying decision."
—Scott McGillivray, Investor and Host and Producer of Income Property