Episode II of the saga is written as recent changes in the market require highlighting. New Developments are fueling the market with injections of new, sexy, ultra-modern architecture, replacing older structure with desired ones.
Buying from plans is still the cheapest way to get into new buildings, although expect to pay from $400 PSF for a well located property. So is it still a good investment? I think so:
First, the market keeps appreciating, and buildings recently sold (new, off plans) at $400 such as 66 Portland now asking and getting $500 for investor units.
Second, downpayments are significantly smaller for new developments then buying re-sale, and you do not have to assume a mortgage immediately. That gives you 2-3 years to accumulate enough funds to curb future mortgage.
Third, and this is a new phenomena: older buildings go out of style, as a result may appreciate as fast as new ones. Huh? simply put, think fashion. Would you wear that 1999 shirt today? I didn’t think so. Same with condos.
So what’s the strategy? as you acquire new developments, start selling your aging ones, replacing them with new buildings that look better, have fresh TARION warranties and deploy the latest in architecture, design and environmental technologies.
For more information contact Yossi Kaplan, MBA