A client’s story about how she made a great ROI on her condo.
Today I wanted to go over a quick example of how you can use real estate to help build your financial future. This is a real example of how one of my clients bought and sold their first property and made a ton of money just by owning where they lived.
In 2017, my client purchased a condo for $304,000. She was actually able to qualify for conventional financing, so her total down payment—including all closing costs, notarial fees, and the welcome tax—was $65,000. Fast forward a couple of years and the condo no longer suited her lifestyle, and she was ready to sell. In 2019, we put the property up for sale and we got her a great price. We got her a $395,000 selling price. She had to pay some closing costs, Realtor fees, and notarial fees so she had a net selling price of $370,000.
“Buy a property instead of paying for rent.”
Let’s dive into the return on investment. She had a total gain of $66,000. She made a 50% return on her investment year over year and walked away from the sale with a $140,000 check. Had the client put down the minimum down payment of 5%, it would have lowered her down payment to about $20,000. In that situation, her ROI would be about four times greater.
Buy a property instead of paying for rent. You’ll pay for where you live, and then you can sell that when it no longer suits your lifestyle. If you have any questions about this or anything real estate-related, please email me. If you prefer, I’m also just a text away at 514-917-6284. Have a great day.