Canada has a plethora of condominiums (condos) in a range of shapes, sizes, and styles. They are a popular type for single people, couples, and working professionals who need somewhere to stay during a stint of business meetings.
As a property investor based in Canada, you will need to choose the best cities to invest in rental properties, but you can also venture out to the smaller, quieter Canadian neighborhoods.
You might be wondering whether purchasing and renting out condos, either in cities or suburban areas, is worth your while. Below, we have covered the many reasons Canadian condos are worth your money as a real estate investor.
Condos Have Relatively Low Maintenance Costs
Compared to larger properties, such as houses or commercial buildings, condos have relatively low maintenance costs due to being smaller in size. A condo has fewer rooms and less space for potential structural issues or aesthetic damages, making it much cheaper and easier for you to maintain over time.
With lower maintenance costs, you can keep more of your rental income and maximize your profits. The money you save with low condo maintenance expenses can be spent elsewhere in your business, whether on further property investments, improving your current rental properties, or marketing your business to a wider audience.
Generally, the condo management company or the homeowners within the condominium block will maintain the exterior area of the property, so you don’t need to worry about these maintenance tasks yourself.
Condos in Canada Appreciate Overtime
Understanding property depreciation and appreciation is essential for any real estate investor. As with other types of properties in Canada, condominiums appreciate over time, meaning they increase in price.
The average annual property appreciation rate is 1.9%, enabling you to gain money on your initial investments, especially when you maintain your properties and modernize them each year.
As a property investor, looking at property appreciation is important for making the right investment choices. By including Canada condos in your investment portfolios, you can ensure you get a good return on investment (ROI), whether you’re buying to rent or selling to further investors.
Canada Has a High Volume of Working Professionals
Condos are the perfect property type for working professionals traveling to different areas of Canada for business meetings. By investing in condos, you can reach this particular target market and ensure a steady stream of income for years into the future.
Choosing areas of Canada that are heavily industrialized, such as Etobicoke or Downtown Toronto, means a constant influx of business owners and working professionals.
Working with one of the condominium property management companies in Etobicoke will ensure you get the most out of your condo rental properties and build a successful investment business.
Canada Offers Tax Benefits for Real Estate Investors
Canada has a great tax system that enables property investors and landlords to reap the benefits of their hard work. In Canada, you will only pay capital gains tax on half (50%) of the sale price of your investment condos, making it an ideal place to purchase, rent, renovate, and sell multiple properties.
In most cases, you can write off any of the payments associated with mortgage interest, property taxes, and renovations or maintenance work on your rental condos. However, you will need to be clear about the unique tax laws in your chosen investment area within Canada.
By reducing your total taxable income by deducting various expenses on your tax returns each year, you can minimize your outgoings and maximize your profits. In turn, you can continue to grow your property investment business and expand your portfolio.
Work with a chartered accountant when filing your tax return to ensure you deduct all of the items and expenses that you are legally allowed to in your local area of Canada so you can reduce your taxes wherever possible.
They will be able to guide you through the process of filling in your tax return and advise you about which expenses you can and can’t write off.
Condos Have Appealing Community Areas
Many condo blocks have community areas where residents can interact with one another and relax outside of their personal spaces. Community areas are appealing to many home seekers and can make your rental property more attractive to those seeking a property in your chosen investment area.
As a result, you will find it easier to get tenants for your condos and should enjoy a steady stream of income each month. This provides you with peace of mind and enables you to run your investment business confidently.
Your Tenants Can Enjoy Increased Security
Because of the community feeling in condos and the close proximity between each condominium within a block, your tenants can feel safe and secure. Many condo blocks have additional security features, such as a manned reception area, pin-coded gates, and secure parking facilities, ensuring even more safety for your tenants.
A secure condo adds extra appeal to your rental properties compared to single-standing properties, and this enables you to reach a wider audience when finding the best tenants. Security for your tenants also enhances their satisfaction and retention, reducing the costs associated with finding and screening new tenants and enabling you to build a strong and steady business.
Condos Offer a Diverse Range of Investment Choices
Compared to houses or offices, condos offer a higher level of versatility. You can invest in condos of a range of shapes, sizes, levels, and price ranges, enabling you to create a diverse and impressive portfolio of property investments.
From luxury condos to budget options, Canada has every type of condo you could imagine, and more are being constructed every year. With a diverse offering of condos, you will be able to attract people from all socioeconomic backgrounds and provide an inclusive service to home seekers in Canada.
Diversifying your portfolio helps to mitigate the risks of real estate investing and enables you to build resilience to the volatile market. With condos available within a range of different rental prices, you can ensure that you always have a steady stream of income due to your wider target audience.
