Selling your condo can be a surprisingly time consuming and emotionally draining task, especially if you’ve never done it before. Having a plan from the start and working with an experienced professional can help you avoid mistakes and get your condo sold quickly and for top-dollar. In this video, I’m going to talk about the […]
When we are talking about investing in pre-construction condos, a leaseback agreement is when you buy a condo from a developer and the developer agrees to lease the unit back from when once it is completed for a pre-determined rate and for a pre-determined amount of time. The money is not paid in a lump sum at closing like a cash back, rather, it is paid out slowly each month just like a tenant who pays on the first of the month. The actual tenant pays rent to the developer who in turn pays you (the owner). The tenant may be paying an amount that is more or less than the leaseback amount but the owner always receives the leaseback amount guaranteed (even if the unit is vacant!)
2. Why are leaseback offers becoming so popular?
The pre-construction market is driven primarily by investors. The investors only goal is to make money on their investment. There are traditionally 2 ways to do this: through cash flow and through capital appreciation. Cash flow is when you rent out a property for more than it costs you to own the property. Capital appreciation is when you sell the property for more than what you bought it for. There has been a lot of talk about the current prices of Toronto condos not supporting positive cash flow with the traditional 20% investor down payment in place. These leasebacks are an attempt to lure investors by giving them not just positive cash flow, but in many cases, guaranteed positive cash flow for 1 or 2 years (assuming mortgage rates do not rise dramatically in the next few years).
Now it’s time to do your PDI (pre-delivery inspection). You’ve probably been waiting as long as 4 years for this, and now it’s finally time to take possession of your new home or investment property. Your PDI is your opportunity to see the condo for the very first time and walk through the property with […]
They don’t work. There, I said it. Some of my fellow Realtors may not appreciate me posting this, but the truth is, open houses add little to no value to a successful marketing plan for selling a property. What many agents tell their clients is open houses are a great way to ‘expose’ your property […]
Combined with cleaning your condo, staging it for sale is probably the most important thing you can do to prepare your condo for sale. Staging is simply the process of making your condo appear as attractive as possible to as many potential buyers as possible. Condos that are staged properly sell faster and for more […]
December 8, 2010 / by Andrew la Fleur /Uncategorized
When listing your condo for sale with a Realtor, there are two main options for what type of listing your property will be: MLS Listing or Exclusive Listing. That’s right, you can sell your condo using a Realtor without using the MLS system. Selling exclusively means you list with one brokerage and give one brokerage […]
How to Sell Your Condo and Buy a House: MAIN SELLING ROOMS
May 22, 2012 / by Andrew la Fleur / Videos
Selling your condo can be a surprisingly time consuming and emotionally draining task, especially if you’ve never done it before. Having a plan from the start and working with an experienced professional can help you avoid mistakes and get your condo sold quickly and for top-dollar. In this video, I’m going to talk about the […]
Read more
10 Things Every Condo Investor Should Know about Leasebacks
September 10, 2012 / by Andrew la Fleur / Insights
1. What the heck is a leaseback?!
When we are talking about investing in pre-construction condos, a leaseback agreement is when you buy a condo from a developer and the developer agrees to lease the unit back from when once it is completed for a pre-determined rate and for a pre-determined amount of time. The money is not paid in a lump sum at closing like a cash back, rather, it is paid out slowly each month just like a tenant who pays on the first of the month. The actual tenant pays rent to the developer who in turn pays you (the owner). The tenant may be paying an amount that is more or less than the leaseback amount but the owner always receives the leaseback amount guaranteed (even if the unit is vacant!)
2. Why are leaseback offers becoming so popular?
The pre-construction market is driven primarily by investors. The investors only goal is to make money on their investment. There are traditionally 2 ways to do this: through cash flow and through capital appreciation. Cash flow is when you rent out a property for more than it costs you to own the property. Capital appreciation is when you sell the property for more than what you bought it for. There has been a lot of talk about the current prices of Toronto condos not supporting positive cash flow with the traditional 20% investor down payment in place. These leasebacks are an attempt to lure investors by giving them not just positive cash flow, but in many cases, guaranteed positive cash flow for 1 or 2 years (assuming mortgage rates do not rise dramatically in the next few years).
Read more
10 Tips for Your PDI on Your New Condo in Toronto
July 1, 2015 / by Andrew la Fleur / Insights
Now it’s time to do your PDI (pre-delivery inspection). You’ve probably been waiting as long as 4 years for this, and now it’s finally time to take possession of your new home or investment property. Your PDI is your opportunity to see the condo for the very first time and walk through the property with […]
Read more
Selling Your Condo: The Truth About Open Houses
August 11, 2009 / by Andrew la Fleur / Uncategorized
They don’t work. There, I said it. Some of my fellow Realtors may not appreciate me posting this, but the truth is, open houses add little to no value to a successful marketing plan for selling a property. What many agents tell their clients is open houses are a great way to ‘expose’ your property […]
Read more
Selling Your Condo: The Truth About Staging
August 12, 2009 / by Andrew la Fleur / Uncategorized
Combined with cleaning your condo, staging it for sale is probably the most important thing you can do to prepare your condo for sale. Staging is simply the process of making your condo appear as attractive as possible to as many potential buyers as possible. Condos that are staged properly sell faster and for more […]
Read more
Selling Your Condo: MLS Listing or Exclusive?
December 8, 2010 / by Andrew la Fleur / Uncategorized
When listing your condo for sale with a Realtor, there are two main options for what type of listing your property will be: MLS Listing or Exclusive Listing. That’s right, you can sell your condo using a Realtor without using the MLS system. Selling exclusively means you list with one brokerage and give one brokerage […]
Read more