Before we make a decision to invest in real estate, we often ask ourselves the same questions:
Is this is a good investment?
What will my investment look like in five years? In 10?
What will it be worth? What about the market?
Often there aren’t clear-cut answers, however, certain investments are clearly better than others.
Everyone’s mortgage is different; down payments and interest rates vary from case to case, year to year. But let’s have some fun and see how much of a Glasshouse Skyloft you could own after 10 years.
For example: Base Price is $229,900 (these units now start on the 9th floor)
Assuming a 75% mortgage = $172,425
Down payment is 25% of the purchase price = $57,475
Assume a 2.59% interest rate (current posted TD 5 year rate) on a 25 year amortization and your monthly payments are: $781.37
Over 10 years you will pay down $55,659 of your mortgage principal, so your mortgage goes from $172,425 to $116,766. At the same time, by appreciating 2% per year, the value of your $229,900 unit goes up to $280,247.
So you start with: $229,900 – $172,425 = $57,475 investment
After 10 years you have: $280,247 – $116,766 = $163,481.
If the numbers aren’t convincing enough, Glasshouse Skylofts has more going for it. It has three distinct advantages that you can’t get anywhere else in Winnipeg.
State of the Art
Unlike condos from the 70s and 80s that are already starting to show their wear, Glasshouse is a brand new development that upholds today’s building standards, which are more comprehensive and preventative. But Glasshouse takes it a step further. Built by Urban Capital, a well-established, reputable developer, these condos are ready to usher in a new era of modernity that will hold up over the years. Living green in a sustainable future is something Glasshouse takes pride in, maintaining sound environmental design. Condition is just something you won’t have to worry about with this investment, and either is paying for a deteriorating building.
Location
“Location! Location! Location!” said everyone everywhere about real estate. And it’s true. People want to live close to the action! Winnipeg’s downtown is currently going through its greatest upswing since the towers went up at Portage and Main – and most of the action is happening around Glasshouse. The SHED is becoming an urban neighbourhood where like-minded people want to live.
Timing
The best investment opportunities are situations where you can reasonably predict the change that is coming and position yourself to ride the wave. There is very substantial public and private investment in Downtown Winnipeg and the trending numbers suggest more and more people are moving here. The secret is getting in at the sweet spot, where you’re between the high risk pioneer and the higher priced second wave. That’s the timing of Glasshouse, today.
No one can predict the future. But a smart real estate investment balances the lifestyle you want with a reasonable expectation of return. Your home should always be a place where you feel both comfortable and secure.