Eq3 Equinox by Monarch – How Investors Do It! Condos at Scarborough Town Centre
March 27, 2010

Investment is the commitment of money or capital to purchase financial instruments or other assets in order to gain profitable returns in form of interest, income, or appreciation of the value of the instrument.[1] It is related to saving or deferring consumption.

What is investing… most of us would think of using our money to make money. That begs the question, if you don’t have any savings, then you can never invest! Yet, we all know someone who had little savings, who was less educated than us, earned less income from their job than us, yet somehow invested and ended of making a lot of money. What was their secret? How did they do it? Great question!

They’ve learned the secret of Investing 101.

What do Investors do differently than most people? Most importantly they “turn off” the NEGATIVE thoughts that come into most people’s minds that inhibit them and tell them “Why they can’t do this or can’t do that”! Secondly they don’t live life in “FEAR” and finally they take “calculated” risks and immediately take action. Has anything ever been accomplished in your life without action? Investors know that fear is overcome by acting on the cause of fear. Once you do that which causes you fear, fear vanishes.

Now that we know an Investors mindset- What is their secret and how do they invest?

Investors Leverage!

They use the banks (& other peoples) money to get the greatest return. They don’t count dimes and nickels but focus on the big picture and seek to get the greatest return on an investment. (ROI)

Let us work the numbers using the Investors mindset on investing in a Condo as an example as per my previous paragraph.

1. Condo unit costs: $350K
2. Deposit structure is 20% (broken down over 1.5 years).
3. Interest rate on Line of Credit (round up to 4%)
4. Investment period 3.5 years.
5. Conservative yearly appreciation 5%

Investors borrow the money from their line of credit or others.
20% of $350K would require them to have $70K over 1.5 year period.

To keep it simple we’ll calculate interest on all $70K at 4%:
$2800 per year x 3.5 years = $9800 = round up to = $10K

Condo appreciates by 5% =$350K x 5% = $17.5K x 3.5 years = $61.25K
Lets be much more conservative and take appreciation at only= $50K

Now your investment into the Condo was $10K as Interest and is a tax right off.
Conservative appreciation is $50K.

Your rate of return on your investment is $50K/$10K x 100 = 500%

Whereas if you put down your own $70K and made $50K on it. Your rate of return is: $50K/ $70K x 100 = 71.43%.
Even that is an excellent ROI especially when you get 1-2% in banks and maybe 5-10% in stock market.

Some of you may have noticed that the investor after paying 10K in interest pocketed $40K Net. While the person who used his own money pocketed $50K. So isn’t it better to use your own money if you have it!

Well NO! Why?

Here is why. The Investor leveraged the banks money for a ROI of a whopping 500%. Investor put up 10K (to cover Interest) and here is the secret of an Investor Pro from an amateur. He/she will pickup not just 1 condo…. but 2, 3 or more. They can as they are leveraging and using others money and if the Investor bought 2 condos, the gain is $80K compared to your $50K while tying up only $20K of their own money and get a tax right off.

That is the secret folks. If you have good credit and have a line of credit, and can change your mind set from “Fear” and “Why I can Not do it” to take action, then you are on your way to making money as you’ve never seen before doing “very little”.

who is thinking of Investing or Buying a Condo.
Well I ran some numbers so you can see how investing in a Condo can make you money.
Those who purchased EQ1 and EQ2… and closed in December 2009 and early this year and recently sold.
Ex.1. 2BR+1 Solarium – Purchased $244,410K (280 Sq Ft) | Sold $318K ($365 Sq Ft)
Ex. 2. 1BR + Den – Purchased $173K | Sold- $237K ($361 Sq Ft)
Ex. 3. Tridel Metrogate 1BR + Den condo for – $199K. Tridel’s price list shows the same condo selling 1 year ago for $242K and Tridel is currently Selling Tridel-Ventus (ready in 2012) at $262,500 ($400 Sq Ft)

So buying a Monarch Condo- at the EQ3 site –
At today’s prices from $377- $400 Sq Ft and closing in June 2013… you can well imagine even at a conservative gain of 5% a year that a condo valued at $259 will sell for $299K…an estimated guess in standard condition*
however if we get similar per sq ft gain as we saw above in Ex 1 and 2. A 1BR + Den condo of 667 Sq Ft would sell for approximately $323K That is a gain of $64K.
Where else can you double your money invested in 3 years? For most not in the stock market and definitely not in a savings account….dont you think its great investment????

Contact me ASAP for details and don’t miss out on the first chance to get a suite before it opens to the general public and every real estate agent.

Best Regards,

Vijay Gandhi,
Sales Representative- REALTOR®,
RE/MAX Dynasty Realty Inc. Brokerage*
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