Finding a good deal when nobody wants to buy and wait for a better time to sell it.
Saturday May 07th, 2022
In fall 2020, buyers benefited from lower prices in the condo market compared to 2019.
As an example, a couple bought a one-bedroom condo in the Lakeshore area for $500k. The unit was pretty big, with two bathrooms. It is rare to find a one-bedroom unit with two bathrooms, and obviously, it was an advantage. Also, the Condo Corporation has a good reputation, and people have many positive experiences with them.
A friendly and well-organized management team responds very quickly to all inquiries. All facilities are open 24 hours, including a gorgeous party room on the top floor of the building.
The location is most definitely unique! It is just steps away from Lake Ontario, restaurants, bars, and only a 10-minute drive from Downtown Toronto.
Despite all these benefits, the unit was located on the third floor and lacked natural lighting. The trees and high rises in front of the unit's windows blocked the lake view.
The condo was built seventeen years ago and hasn't been renovated since. All appliances and faucets were in as-is condition; outdated kitchen cabinets, plastic countertop, old tiles around the unit, and a non-inviting beige color palette dominated the property.
What did the owners do?
They changed the look of this property, and the budget for the renovation project was $15K.
Also, they put it on the market at the right time, when everyone was interested in buying.
Keep in mind that the property was bought in the fall of 2020 and resold in the fall of 2021
The final price was $655K
My Conclusion: Finding a good deal when nobody wants to buy and wait for a better time to sell it. These homeowners put a very small investment into the property and, with the right timing, resold for a huge profit margin.