Would a preconstruction condo be a good first investment?

[Niko Bruno]

Hi,

i would like to start investing in real estate but the market in my area (Montreal, Quebec) is too expensive for the capital I currently have. I saw a really nice preconstruction project in Calgary, Canada in the downtown area which is a AAA location and from what I’m researching Calgary is an up and coming market as they are not so depend on oil and gas as they once were. 

The closing is suppose to be in mid 2025 but all they are asking for is a 10% deposit upfront that is all (5% if I qualify woth the bond company to put in the other 5%) Closing cost are extremely low comparing to other markets there’s no land transfer cost. Property management is included for the 1st 3 years. There are no development charges. Assignment is free so I can sell the property at closing. I can go on. It seems like a great opportunity to get a great appreciation. Cash flow is hard to predict due to it being far in the future but If I look on rentometer putting 20% down at 2% interest i would have a negative cash flow of 125/mth.

I was wondering everyone’s thoughts on this as it would be my first investment.