How to Double Your Money with Real Estate
In a typical pre-construction project, your down payment is 20% paid over a period of 1.5 years. If you’re buying a condo with a Property Price of $500k, your down payment would be $100k.
But what about the rest of the money? You start paying the rest ONLY on occupancy in about 3-4 years. At that time, you would have to go get a mortgage for the remaining $400k at a low interest rate of only 2-3%.
During those 4 years up until occupancy, you’re NOT paying a mortgage. You’re NOT paying property tax. You’re NOT paying for maintenance. You’re NOT dealing with tenants… You’re just sitting back and relaxing.
Remember, you didn’t pay $500k. You only paid $100k from your pocket.
If the Property Price increases each year by 8-15% (average of 10% increase) from $500k, but you ONLY invested $100k of your money, that means you’re making $50k/yr return from your $100k.
That’s a minimum of 30-50% annual return on your investment in a normal market.
A 30-50% return each year is INCREDIBLE. There aren’t many other ways that your money could make THAT kind of a return, and especially not any ways where the risk is so low.
If your $100k was sitting in a Bank, you’d be making 1% return/yr. If you invested $100k in Mutual Funds, you’d be making 8-10% return (but it’s risky)!’
If you invest your $100k in the right pre-construction projects, you’re making 30-50% return per year, with low risk.
The GTA can’t keep up with the demand for housing. As more companies move to Toronto and create more jobs, and more and more people move to Toronto, condos remain in high demand. And there are no signs of the market slowing down anytime soon.
As long as you take into consideration my 4 key factors of Location, Building, Builder, Deal – you CAN make a 30-50% return per year.
But it’s not as easy to buy real estate now as it was 10 years ago. And as regulations and mortgages change, it’s only getting harder to buy. So the best time to invest is NOW.
Check out Fit4Vip.com for our current top projects, or call email Frank at vip@Fit4VIP.com to discuss an investment that’s right for you.