PAUL B: Sometimes builder improperly classify freehold and condominium. While listing keep in mind freehold vs. condo townhouse vs condo vs apartment.
Sell the NEED not the product
NEED: Investments / Personal use
400 units building = 4 bachelor units 380 sf = 200
worksheets = 2% success chance
800 worksheets for whole building
Client’s heart set
Presentation or throwing information is not everything in sales.
Ask questions, try to find what needs to accomplish. Always not happy reason
for transaction, there are bad reasons too.
Moving to small place / condo from house because mortgage
rates rise and problem was affordability. Death, divorce; lots of scenarios.
Investment; better close to transit, job site, developing
area
Rental return Analysis, close to university
Capital Appreciation; Short term Flip vs Medium Term Hold
Mortgage pay down by tenant
Personal use; may be different set of questions; likes,
wants, haves
Several components 7:05 - 8:00 License in Alberta / Broker License
1 PBA 2022 06 28
Sometimes there is some discrepancies while builders register as condo but when they build, they go for freehold townhomes and condominium apartment too which principally becomes wrong classification.
https://www.youtube.com/watch?v=RfhjaooASnI&list=PLgmxv-ktHfPoQGVuplUJglB0UIAKh6o3w&index=1
2 PBB1 2022 06 28
Danny Danforth Condos (completed)
Sell the NEED, not the product (floor plans etc). NEED: Investment, personal use
400 units in a building; 4 units 380 sf studios. Out of 800 worksheets 200 for those 4 units. There is 2% chance of success if client has set heart for one 380 sf unit.
Instead of throwing information ask questions. Sometimes transaction is based on happy / bad reasons. Moving in smaller place (condo); mortgage rate raised and affordability became challenge.
People pass away, divorce (many scenarios). Need to know the detail.
Investment: close to transit, developing site. May have combo; kids going university. Properly analyze the rental return. Look into rental return and appreciation.
Personal use; may have different set of questions; likes, wants, haves
Several components 7:05 - 8:00 License in Alberta / Broker License. Over there is 10% down payment and positive cash flow. Capital appreciation.
Solid foundation of the market in GTA. Buy in $500K and after 5 years sell in $700K, this is capital appreciation.
If the investor is not good in monetary standing, doesn't have lot of money. Doesn't have disposable income to cover the negative cash flow and wants to step in the market. Alberta may be the better option.
Challenge is that we try to know the capital appreciation.
When we drop a stone in a pond, there is ripple effect. This is how real estate market works on capital appreciation. Sometimes it doesn't work.
Downtown Toronto: biggest capital appreciation. In 2021 it was suburb due to online work from home trend.
Mortgage paydown by the tenant. Evaluation; buy (debt service ratio, mortgage payment = $5,000; 3200 interest, 1800 interest) or rent the office space.
3 components; a) cash flow from rental payment,
b) capital appreciation [looking last 30 years, there was some adjustments in 1990, 2008, 2017 for few months.]
Let us see between 1996 and 2022, in 26 years only 2 times price was down.
Reality is that market fluctuates but on the basis of yearly it was growing [Market Watch study].
On average Real Estate generated 9.3% return year over years.
Stocks have -ve numbers. Most people don't do well. It has just capital appreciation. Sometimes some stocks pay dividends. Rental return and mortgage paydown is not there.
It makes Real Estate investment more exciting.
3 PBB2 2022 06 28 1:40
https://www.youtube.com/watch?v=BzNkGSVgamw&list=PLgmxv-ktHfPoQGVuplUJglB0UIAKh6o3w&index=2
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