Buy Low Sell High: The Same Old Concept in a New Age of Waterfront Condo Real Estate.
On Canada’s west coast the condo market is like no other. Particularly on the North Shore in the sub-regions of Central and Lower Lonsdale the condo market has continued to boom.
This has afforded Donald Trump like, savvy gurus to cash in by picking up a plethora of condominiums and then selling them for a profit (even after factoring in closing costs). In addition to these investors (both local and abroad), the majority of the players in this game are small time investors who take on an investment property, or more simply, are just people who buy a condo/townhouse for their own use and then flip in a couple years at a profit.
There are various methods whereby which a buyer of any magnitude can attempt to buy low and sell high. The most sensible of methods is when you buy at a time when the real estate market is slow. This could be either a cyclical market fluctuation or just a seasonal variation. Once you have bought and held the property long enough for values to raise you then sell it at a higher value.
On the North Shore, where room for growth is limited, waiting for the market to go through one of these waves is likely to be rather long. In a place where people have come to expect 5-20% price increases each year the more likely method of buying low and selling high will be seen by individuals who buy various types of Strata’s/condos and then put equity into them and sell them at a high. How? Buy changing it as a product, or in simple terms, doing a renovation. With places like Home Depot and Ikea providing a wide range of very inexpensive user friendly renovation products that make the average inexperience home owner look like a first rate contractor – home owners can now more then ever easily convert the most run down of condo into a posh urban utopia.
There are key renovations that garner the biggest profits. The key features that attract buyers to various marketed real estate centers on renovations to the kitchen, bathroom(s), and floors.
Kitchens are key to all buyers. If you’re looking to buy low and sell high consider the kitchen as the secret to the success of this venture. Most condo living individuals spend a great deal of time in their kitchen. Those that have kitchens with new cabinets (easily bought at Ikea), stainless steel appliances, and halogen lighting are more prone to use their kitchen as there main living area. Buyers are attracted to condos that have had a kitchen reno – most like the thought of unpacking their belongings on the day they move in rather then the thoughts of spending their first few months living out of boxes. The same can be said for bathrooms. Knowone likes to use a sink or toilet that has been used, washed, and reused for 25 years! This is the reason many of today’s buyers will pay a premium (high) for condos that people have renovated. This is why if you buy a condo at a low price (because of the value decreasing old appliances/ bathroom fixtures) and if you do these necessary renovations, you can more often then not turn around and sell it at a higher price in a short period of time. The final thing that changes the look, feel, and value of a condo in today’s condo market is changing the flooring. Right now it is an understatement to say that carpet is out and hardwood and even laminate flooring is in. Numerous condos in Central and Lower Lonsdale have been bought, painted, and had nothing more then new floors installed and were later sold at a profit.
Subsequently, it can be concluded that condos that do not have these renovations can be bought at a lower price and then once renovated can be / have been sold for a profit. If you’re looking to do this do not hesitate to contact me, Joel Carcone of Re/Max Crest – North Vancouver. I have clients who have bought into various style condos and townhouses at rather affordable prices and have been able to convert/renovate these properties. In essence, what the majority have done is convert not only the style but more importantly the value of their strata’s. I am sure that if values continue to do what they have in areas of Central and Lower Lonsdale more and more people will recognize the potential of this process. This will only continue to have positive impacts, because as people continue to gentrify, this urban landscape it will simply continue to attract more people into the area. This increased demand will drive up prices and then you have people buying low and selling high! If your intrested - I would love to assist you profit from such a venture.
By Joel Carcone