Are condos a good investment? Although there are differing views on this, the Toronto Star is reporting that the demand for renting those investment condos is strong. Of course, the quality of an investment is relative. Will they appreciate over time as much as investing in a detached home? I don’t see how they could. But, ….
Have a look at the following two recent articles.
This is a quick post based on a telephone call I had yesterday. You might be interested in buying a property that has tenants in it. You could be buying as either a potential owner or as an investor. Either way, this is a purchase that will require some thought. The primary factor driving a purchase or sale with a “tenanted property” is the Residential Tenancies Act in Ontario (or I am sure comparable legislation where you live).
Residential Tenancies Act:
The legislation gives tenants clear rights. The most relevant right is the right to stay in the property (assuming they pay rent). In other words, absent very narrow circumstances, a landlord cannot simply give the tenant notice and ask him to leave. The primary “objective reason” that a “paying and responsible tenant” can be asked to leave is if the owner, or his immediate family, wants to move into the rental unit. (Now, I do understand that this is a bit of an oversimplification, but I don’t want to get sidetracked.)