This week, I talked to BNN Bloomberg about the questions you should be asking yourself before investing in a pre-construction condo.
Every day, people tell me they've talked to someone who has made money by investing in a pre-construction (pre-con) condominium (condo) and wonder if they should do the same.
While some have no doubt made money by condo investing (i.e., not purchasing a condo unit to live in themselves but to either rent it out or sell it in order to benefit from the condo's price appreciation), I'm seeing too many people assume that this will always be the case - even though the data suggests that we need to be very cautious about the pre-con market in the Toronto area right now.
John Pasalis is President of Realosophy Realty, a Toronto real estate brokerage which uses data analysis to advise residential real estate buyers, sellers and investors.
A specialist in real estate data analysis, John’s research focuses on unlocking micro trends in the Greater Toronto Area real estate market. His research has been utilized by the Bank of Canada, the Canadian Mortgage and Housing Corporation (CMHC) and the International Monetary Fund (IMF).
Follow John on Twitter @johnpasalis