Nobody can deny that the Canadian real estate industry can be very lucrative at times. However, you should know that a good buy can quickly transform into a bust in a short time, considering how fickle market rates are as well. Whether you’re buying a Vancouver condo for residence or as an investment, you need to be aware of the pitfalls you may come across.
First, buying condos or any other property entails taxes, some of which you may not be aware of if you’re not updated with current events. In Ottawa, for example, the government introduced tighter immigration laws in February 2014, which means that foreign investors can no longer protect their investment income from taxation.
Second, it’s foolhardy for you to think that your condo will naturally appreciate in value over time. History has proven that a real estate boom could sometimes lead to a huge drop in demand, therefore, a drop in prices as well.
Third, upgrading your property in the hopes of selling it for a huge profit isn’t always a good idea. After all, some buyers can be very picky when it comes to certain features they want for their condo.
Finally, and perhaps most importantly, you need to be absolutely sure about your intensions in buying a condo. Shifting from “buying for residence” to “buying for investment” in short order can lead to unforeseen consequences.
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