The Advantages of Investing in Resale Condos: A Profitable Strategy
Understanding the Potential of Resale Condos
In today’s dynamic real estate market, seizing opportunities for swift financial growth through resale condos is attainable. The pivotal factor lies in discerning the optimal price point. Ideally, investors should target properties priced comparably or below pre-construction rates within the same vicinity. Acquiring a relatively recent resale condo, boasting a commendable floor layout from a recognized builder, particularly in locales witnessing burgeoning pre-construction developments, amplifies the investment’s potential profitability. Such proximity to emerging structures can bolster the resale value when the time is ripe for a sale.
Comparing Resale and Pre-Construction Condo Investments
Imagine encountering a 700 sqft resale unit listed at $1000 per square foot. Contrast this with an equivalent-sized pre-construction unit, which commands $1300 per square foot.
Resale Scenario:
- Price per sqft: $1100
- Initial Investment: $770,000
- Projected Resale (6 years): $1400 per sqft
- Anticipated Sale Price: $980,000
- Potential Profit: $210,000
Pre-construction Scenario:
- Price per sqft: $1300
- Initial Investment: $910,000
- Projected Resale (6 years): $1500 per sqft
- Anticipated Sale Price: $1,050,000
- Potential Profit: $140,000
Leveraging Resale Advantages for Optimal Returns
While the resale unit might not command the same per square foot price as its brand-new counterpart during the sale phase, strategic measures can bridge this gap. Investing in a unit within a reputable establishment with a robust sales history offers an edge. Employing tactics like proficient staging can help achieve a comparable price per square foot during the resale process. This approach not only ensures a cost-effective purchase initially but also amplifies the resale value, courtesy of the burgeoning new constructions nearby. Additionally, the extended rental duration spanning six years instead of merely two further enhances the investment’s profitability through consistent rental income.
