Do you think this is not possible? Beleive it or not, it is. Yes, you CAN build 10, 20 or even 30% equity in a property here if you have vision and courage. Here is a classic case in point.
Earlier this year, I had a condominium listed for sale in a prime location opposite the Village at Blue Mountain and backing onto a private, wooded area. The condo had 3 bedrooms, two baths and lots of living space at a price well below newer condos in the area. This unit was clean but admittedly tired with passé décor and in need of an upgrade. You can see the BEFORE pictures below. The asking price reflected this. During the time it was listed for sale, literally dozens of people viewed it and a few low offers came forward. Everyone complained it was in need of an upgrade and they didn’t really want to spend the time doing that for fear they would not get their value back out. Hogwash.
I bet many of those people who have since purchased, bought something and have done little to change their surroundings. I also bet those same people have not built one cent in equity given that condo values have not gone up in and around the Village at Blue since then.
In contrast, along came a family with vision who bought the tired condo. They knew the location was unbeatable, the price was right and with a good contractor, a complete renovation could be done and still bring them in under market value. And so they did.
During a recent visit, the new owners explained to me that they had a total of four visits with the builder and the balance was done by email. Some time of course had to be spent in finalizing the design and making product and colour selections but over-all, not a huge time commitment had to be put in. They are both very busy professionals, living in Toronto with two young children as well.
Now here is the best part. I would estimate that with the original purchase price along with the renovation costs, these astute owners have already built at least 20% equity in their condo if not more. They have also dramatically increased the potential income should they decide to rent it out from time to time. Their great sense of design, taste and courage to take on a renovation has really paid off. Have a look at these BEFORE and AFTER pictures.
Marg Scheben-Edey is a Broker with RE/MAX four seasons realty limited, Brokerage in beautiful Collingwood, ON. With three decades of experience, Marg is a leader in the local real estate marketplace and is ready to help guide both Buyers and Sellers in achieving their real estate goals. Email Marg