Re: Rental Income vs Condo Sale

[EMAIL PROTECTED] (Amit) wrote in message news:<[EMAIL PROTECTED]>...
> What is advisable if someone has 15% down payment for an investment
> Condo:
> 
> To buy and rent out a newly built condo right away and start paying
> mortgage from rent or to book a builder's condo that will be completed
> in 2006 and Sell it later for profit?
> 
> Both the above options pertain to Mississauga Ontario. The builders
> are highly reputed and the deposit is guaranteed by the provincial
> government plan of ONHWP.
> 
> Thanks,
> 
> Amit

See my other reply where I addressed your specific points a little
more closely.

Slightly off topic... I am working on deals or have deals already
signed that are between 5% and 10% as the deposit. Better leverage.
15% seems a bit high (at least it would be in my markets). Find out if
the developer can do something to reduce the amount. If not and you
want better leverage send me a note and I can tell you about the other
deals.  Most are 2004 or 2005 with one being 2006 based on current
assumptions.

BTW - Expect the builder to be late. Be careful if they happen to
finish early. I know one project that came in a year early and some of
the investors could not preform.

John