According to real estate market experts, heat is set to return to the housing market and with it, even higher home prices are bound to come. The Canadian Real Estate Association (CREA) has estimated that a small increase in the average price of condos and other property types will be seen in 2024, followed by a more significant rise in 2025. A 0.7% average price increase in properties is expected by year-end and a 3.9% increase by 2025.
CREA is also predicting a rise in the number of homes sold in Ontario alongside the increase in average prices. They expect a 2.2% increase in sales by the end of 2024, followed by a bigger increase of 7.3% in 2025. So, savvy investors in Brampton, if you have been waiting for the perfect time to step foot in the housing market, now is the time.
In this blog, we will discuss why condos for sale Brampton are a better investment option than other property types. We will also be revealing some handy tips on how to afford a condo in the city.
Why Choose a Condo Over Other Property Types in Brampton for Investment?
- Stretch Your Investment Dollars – More Affordable Price
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PROPERTY TYPE AVERAGE PRICE Detached Homes $1.19M Semi-Detached Homes $911.31K Townhouses $859.26K Condos $552.0K
As you can see, condos have a significantly lower price tag as compared to other property types in Brampton. This lower cost of condos translates to several advantages for investors.
Firstly, a lower purchase price means a smaller down payment. This frees up your capital, allowing you to potentially invest in multiple Brampton condos for sale or other assets.
Secondly, with a lower mortgage on a condo, you’ll have smaller monthly payments. This can improve your investment cash flow, allowing you to generate profits even if your rental income is lower.
- Attracts Young Renters, Bringing Steady Income for Investors
According to Statistics Canada census data, Brampton attracts a lot of young professionals. Brampton’s proximity to Toronto makes it ideal for young professionals who want to stay close to Toronto’s job market but prefer a more budget-friendly situation. In the 2016 census, 42% of the population in Brampton was found to be under 29 years old.
This growing young professional population of Brampton keeps the demand for rentals high. And condos for sale in Brampton, often located near amenities and transit are perfect for this demographic.
As an investor, this popularity of condos translates to a steady stream of rental income for you. With a constant flow of young professionals looking for places to live, finding tenants for your Brampton condo shouldn’t be a major hurdle.
- Hands-Free Investment – No Maintenance Hassle
Condos offer another unique advantage to investors – freedom from the hassles of property maintenance and upkeep. Unlike single-family homes, you won’t be responsible for mowing lawns, shovelling snow, or dealing with leaky roofs in a condo.
The condo association handles these maintenance tasks on behalf of owners, thus saving you time, money, and stress. This is a major perk for investors, especially those who don’t live nearby or have busy schedules.
- Built-in Security – Peace of Mind for You and Your Tenants
Brampton condos for sale typically come equipped with built-in security features. This could include controlled access entry, security cameras in common areas, and sometimes even on-site security personnel. These advanced security features create a safer environment in your condo and reduce the risks of break-ins, vandalism, or theft.
The “increased security” feature also makes your condo rental property more attractive to tenants. Tenants appreciate the added layer of security in the Brampton condo. This can lead to higher rental rates and potentially lower vacancy periods, maximizing your return on investment.
- Capital Appreciation – A Path to Building Long-Term Wealth
Brampton boasts a booming population and a strong, diverse economy, fueling demand for housing. This rising demand, coupled with a growing job market could push up prices of Brampton condos for sale in the long run. Also, Brampton’s ongoing investment in infrastructure such as the Hurontario LRT could make condos located near the area even more desirable, appreciating their prices.
Budget-Friendly Tips for Buying a Brampton Condo
Because of the sky-high mortgage rates, buyers are having a hard time affording homes, even the condos in Brampton that are comparatively affordable. If affordability is a concern for you too, these tips can help you invest in a condo sooner –
- Increase your down payment – The more money you can put upfront, the smaller your mortgage payments will be. With a smaller mortgage payment, investors can have more disposable income each month. This is why we aim to save at least 20% of the Brampton condo’s purchase price for a down payment.
- Improve your credit score – A good credit score will help you qualify for a lower interest rate on your mortgage on the condo for sale in Brampton. There are a number of things you can do to improve your credit score such as paying your bills on time, lowering the credit utilization ratio, and avoiding applying for too much credit at once.
- Get pre-approved for a mortgage – Getting the mortgage pre-approval will show the condo seller that you’re a serious buyer and will help you move quickly when you find the right condo.
- Consider a small condo – Go for a smaller condo unit size without compromising on the location or amenities.
- Work with a Realtor – A Realtor who specializes in real estate investment can help you find Brampton condos for sale that are a good fit for your investment goals and negotiate the purchase price on your behalf.
- Investment Partnerships – Consider partnering with other investors or pooling resources so you can afford higher-value properties in desirable areas.
- Explore Government Programs – Look into first-time buyer incentives or other government programs that offer financial assistance or tax benefits to real estate investors.
Act Now for Maximum Benefit
With the housing market set to heat up and prices on the rise, now is the perfect time to invest in Brampton condos for sale. By choosing condos, investors can enjoy affordability, steady rental income, and the potential for long-term capital appreciation. So, seize this opportunity to secure a profitable investment in Brampton condos before prices climb higher.
