Investing in a Condominium at Triple Crown Communities

Greater Victoria has plenty going for it: fine weather, an eclectic mix of amenities and plenty of lifestyles. If you’re thinking of moving here, have you considered buying a brand-new condominium long before you arrive?

Retirement Planning.

Why not gain some equity as you make your plans to move to southern Vancouver Island? Even though the BC government has cracked down on empty homes with the Speculation and Vacancy Tax, you will find it is straight forward to purchase a condominium and rent it out in the meantime. Read on to find how.

But What Will It Cost?

This article features pre-construction condominiums at Triple Crown Communities located in Langford, B.C., which is one of Greater Victoria’s 13 Municipalities. It is a family-friendly, mixed use community with plenty of amenities close at hand. Residence II is a six-storey, 70-unit building with a completion target of December 2020. The numbers work well for investors or for first-time home buyers alike.

For our financial analysis we asked Tony Preziuso, Mortgage Specialist with RBC Royal Bank® to put together a spread sheet which compares total financing and monthly payments based on a two-bedroom, two-bathroom condominium with a $446,250 purchase price, a 25-year amortization, five-year closed term and an interest rate of 3.2 per cent.

If you were to purchase a Residence II condominium as an investment, Royal Bank will fund up to 80 per cent of the appraised value. For the above purchase price, 20 per cent down would be $89,250 leaving $334,687 to be financed. Here’s a breakdown on what your monthly costs would be:

The monthly mortgage amount, principal and interest, would be $1,618 per month
Estimated heating costs would be $50 per month. (The amount is low because the building will be equipped with efficient ductless heat pumps).
Condo fees will be somewhere in the neighbourhood of $275 per month.
Property tax estimate would be about $100 per month.

The total monthly commitment based on the above numbers brings the monthly total to $2,043.

Now for the interesting part. Guess how much people in the first condominium building at Triple Crown Communities, along with comparable properties are renting for right now? Between $2,200 and $2,500 per month.

The difference between monthly costs and rental income will put cash in your pocket every month. All the while, your renter is paying down your principal and building up your equity.

Note that owning your condo will save you a good deal of money compared to renting a condo. That’s now true for most of Greater Victoria.

If you like the idea of buying a condominium to rent out until you, or perhaps your kids or grandkids, are ready to take possession, but you hate the idea of being a landlord and dealing with tenant challenges, is there a way you can keep your sanity and still enjoy the benefits of a real estate investment? Yes.

Hire a Property Manager For?

If you are an out-of-town landlord who needs a local professional on the ground to help you manage your investment, or if you are local landlord who doesn’t want to deal with renting and managing your condominium, a good, professional property manager will ensure your investment runs smoothly. They will advertise for tenants, screen applicants, handle the deposit and monthly rent collection, deal with any challenges, enforce the rules, and regularly report in with you. Triple Crown brokered an agreement with one of the best local property managers.

Introducing Adam Tayor – Property Manager with Proline Management Ltd.

Adam and Proline Management Ltd. have agreed to manage properties in Residence II at a reduced rate of 8 per cent. That’s well below market value! What that means is when you add property management costs to your monthly expenses, you will either come out even (no negative cash flow, thank you), or you will have a small positive cash flow every month while your equity immediately begins to build.

The numbers always tell the story, and a condominium at Triple Crown Communities works.

Call Todd or Justine at 250-474-4800 or email them at info@triple-crown.ca if you have questions. More information is available at https://www.triple-crown.ca