By Condo Culture
Real estate has the potential to generate huge returns on your investment. This week, we take a look at how one investor was able to make $87,500, an annual average return of over 40% in less than 3 years through the purchase of a Waterloo region condo unit in 2018.
The unit A 500 sq ft studio condo unit with a storage locker, located in a desirable condo building in Kitchener along the LRT line and in close proximity to major tech companies, a hospital and retail shops.
Let's check out the numbers...
The original purchase price was $225,000 with a 25% down payment, an interest rate of 2.44% and a 25 year amortization period resulting in a monthly mortgage of $752.
Given the new nature of the unit, expenses were minimal and in addition to the monthly mortgage payments included condo fees, insurance and property taxes.
A consistent tenant was secured with the assistance of the Condo Culture leasing team and there was zero vacancy since purchase with a positive monthly cash flow.
Additionally, the unit was immaculately kept by the tenant requiring only minor cosmetic touch ups at the time of sale.
Again, with the assistance of the Condo Culture team, the unit sold in 2021 for over asking and $90,000 more than it was originally purchased for less than 3 years earlier.
Through positive cash flow and building equity via steady market appreciation and paying down the mortgage it was able to generate a gain of $87,500 after expenses in less than 3 years.
For more information on how to start or grow your real estate portfolio, contact the Condo Culture team.
Each and every day, Condo Culture hunts the market and pulls together the most complete database of available condo listings including properties not listed on REALTOR.CA®. Create your account and immediately get access to the latest condo listings before they hit the market.Sign Up Now