Parkshore News

Multi-family investments considered a “flight to safety”

Pre-sale condo projects may be a safe investment during a global pandemic.

Uncertainty in our current economic condition may have you feeling like you have to put your investment dreams on hold. However, British Columbia’s top real estate experts are arguing that investing in multi-family projects is “a flight to safety” during this time. There are a couple of options when considering a multi-family residential investment, post-construction and pre-sale. Both have their benefits. If you don’t want to tie up all your money at this time, but still reap the benefits of investment appreciation, a pre-sale condo might be the best option for you.

5 benefits of investing in pre-sale condos.

A safer alternative: The volatility of the stock market can make purchasing a pre-sale condo a safer long-term choice. This long term strategy is a great way to earn passive income with little investment. With a pre-sale condo, you make a return on the entire value of your purchase, despite only paying an initial portion upfront. With stocks or mutual funds, you would only get a return on the actual money you put down.

Rental demand: Demand throughout BC is relatively high; however, many are seeking more affordable markets like that on Central Vancouver Island. With a vacancy rate of 2%, more people in Nanaimo are continuing to look for affordable rent options. Nanaimo’s population is one of the fastest-growing on Vancouver Island, outpacing Greater Victoria by .5%.

Appreciation in value: Prior to our current economic condition, the real estate market was on the upswing; however, experts are now suggesting it will take several months for house prices to recover. This stall in the market will have less of an effect on a pre-sale condo with a completion date a year or two from now. 

Low down payment: On the contrary to a post-construction property, your lower initial deposit allows for the property to appreciate in value. The remaining amount of the deposit can be paid upon completion.

Mortgage payments: Mortgage payments for pre-sale condos start once the project is complete. Your investment will make money without having to put a lot upfront.

Check out this article by Western Investor to find out more about how multi-family projects will “ride out the COVID-19 crisis better than most.”